Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2017shares | |
Document - Document and Entity Information [Abstract] | |
Document Type | 20-F/A |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | FY |
Trading Symbol | GSK |
Entity Registrant Name | GLAXOSMITHKLINE PLC |
Entity Central Index Key | 1,131,399 |
Current Fiscal Year End Date | --12-31 |
Entity Well-known Seasoned Issuer | Yes |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 5,372,553,820 |
Consolidated income statement
Consolidated income statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Turnover | £ 30,186 | £ 27,889 | £ 23,923 |
Cost of sales | (10,342) | (9,290) | (8,853) |
Gross profit | 19,844 | 18,599 | 15,070 |
Selling, general and administration | (9,672) | (9,366) | (9,232) |
Research and development | (4,476) | (3,628) | (3,560) |
Royalty income | 356 | 398 | 329 |
Other operating income/(expense) | (1,965) | (3,405) | 7,715 |
Operating profit | 4,087 | 2,598 | 10,322 |
Finance income | 65 | 72 | 104 |
Finance expense | (734) | (736) | (757) |
Profit on disposal of interest in associates | 94 | 843 | |
Share of after tax profits of associates and joint ventures | 13 | 5 | 14 |
Profit before taxation | 3,525 | 1,939 | 10,526 |
Taxation | (1,356) | (877) | (2,154) |
Profit after taxation for the year | 2,169 | 1,062 | 8,372 |
Profit/(loss) attributable to non-controlling interests | 637 | 150 | (50) |
Profit attributable to shareholders | 1,532 | 912 | 8,422 |
Profit after taxation for the year | £ 2,169 | £ 1,062 | £ 8,372 |
Basic earnings per share (pence) | £ 0.314 | £ 0.188 | £ 1.743 |
Diluted earnings per share (pence) | £ 0.310 | £ 0.186 | £ 1.723 |
Consolidated statement of compr
Consolidated statement of comprehensive income - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of comprehensive income [abstract] | |||
Profit after taxation for the year | £ 2,169 | £ 1,062 | £ 8,372 |
Items that may be subsequently reclassified to income statement: | |||
Exchange movements on overseas net assets and net investment hedges | 462 | 646 | (618) |
Reclassification of exchange on liquidation or disposal of overseas subsidiaries | 109 | ||
Fair value movements on available-for-saleinvestments | (14) | 251 | 416 |
Deferred tax on fair value movements on available-for-saleinvestments | 47 | (91) | |
Reclassification of fair value movements on available-for-saleinvestments | (42) | (245) | (346) |
Deferred tax reversed on reclassification of available-for-saleinvestments | (18) | 51 | 36 |
Fair value movements on cash flow hedges | (10) | 2 | 2 |
Deferred tax on fair value movements on cash flow hedges | 2 | ||
Reclassification of cash flow hedges to income statement | 1 | 2 | |
Share of other comprehensive expense of associates and joint ventures | (77) | ||
Items that may be subsequently reclassified to income statement | 534 | 708 | (676) |
Items that will not be reclassified to income statement: | |||
Exchange movements on overseas net assets of non-controlling interests | (149) | 603 | 8 |
Remeasurement gains/(losses) on defined benefit plans | 549 | (475) | 261 |
Tax on remeasurement of defined benefit plans | (221) | 126 | (80) |
Items that will not be reclassified to income statement | 179 | 254 | 189 |
Other comprehensive income/(expense) for the year | 713 | 962 | (487) |
Total comprehensive income/(expense) for the year | 2,882 | 2,024 | 7,885 |
Total comprehensive income for the year attributable to: | |||
Shareholders | 2,394 | 1,271 | 7,927 |
Non-controlling interests | 488 | 753 | (42) |
Total comprehensive income/(expense) for the year | £ 2,882 | £ 2,024 | £ 7,885 |
Consolidated balance sheet
Consolidated balance sheet - GBP (£) | Dec. 31, 2017 | Dec. 31, 2016 |
Non-currentassets | ||
Property, plant and equipment | £ 10,860,000,000 | £ 10,808,000,000 |
Goodwill | 5,734,000,000 | 5,965,000,000 |
Other intangible assets | 17,562,000,000 | 18,776,000,000 |
Investments in associates and joint ventures | 183,000,000 | 263,000,000 |
Other investments | 918,000,000 | 985,000,000 |
Deferred tax assets | 3,796,000,000 | 4,374,000,000 |
Derivative financial instruments | 8,000,000 | |
Other non-current assets | 1,413,000,000 | 1,199,000,000 |
Total non-current assets | 40,474,000,000 | 42,370,000,000 |
Current assets | ||
Inventories | 5,557,000,000 | 5,102,000,000 |
Current tax recoverable | 258,000,000 | 226,000,000 |
Trade and other receivables | 6,000,000,000 | 6,026,000,000 |
Derivative financial instruments | 68,000,000 | 156,000,000 |
Liquid investments | 78,000,000 | 89,000,000 |
Cash and cash equivalents | 3,833,000,000 | 4,897,000,000 |
Assets held for sale | 113,000,000 | 215,000,000 |
Total current assets | 15,907,000,000 | 16,711,000,000 |
Total assets | 56,381,000,000 | 59,081,000,000 |
Current liabilities | ||
Short-term borrowings | (2,825,000,000) | (4,129,000,000) |
Contingent consideration liabilities | (1,076,000,000) | (561,000,000) |
Trade and other payables | (20,970,000,000) | (11,964,000,000) |
Derivative financial instruments | (74,000,000) | (194,000,000) |
Current tax payable | (995,000,000) | (1,305,000,000) |
Short-term provisions | (629,000,000) | (848,000,000) |
Total current liabilities | (26,569,000,000) | (19,001,000,000) |
Non-current liabilities | ||
Long-term borrowings | (14,264,000,000) | (14,661,000,000) |
Corporation tax payable | (411,000,000) | 0 |
Deferred tax liabilities | (1,396,000,000) | (1,934,000,000) |
Pensions and other post-employment benefits | (3,539,000,000) | (4,090,000,000) |
Other provisions | (636,000,000) | (652,000,000) |
Contingent consideration liabilities | (5,096,000,000) | (5,335,000,000) |
Other non-current liabilities | (981,000,000) | (8,445,000,000) |
Total non-current liabilities | (26,323,000,000) | (35,117,000,000) |
Total liabilities | (52,892,000,000) | (54,118,000,000) |
Net assets | 3,489,000,000 | 4,963,000,000 |
Equity | ||
Share capital | 1,343,000,000 | 1,342,000,000 |
Share premium account | 3,019,000,000 | 2,954,000,000 |
Retained earnings | (6,477,000,000) | (5,392,000,000) |
Other reserves | 2,047,000,000 | 2,220,000,000 |
Shareholders' equity | (68,000,000) | 1,124,000,000 |
Non-controlling interests | 3,557,000,000 | 3,839,000,000 |
Total equity | £ 3,489,000,000 | £ 4,963,000,000 |
Consolidated statement of chang
Consolidated statement of changes in equity - GBP (£) £ in Millions | Total | Share capital [member] | Share premium [member] | Retained earnings [member] | Other reserves [member] | Total [member] | Non- controlling interests [member] |
Equity at beginning of period at Dec. 31, 2014 | £ 4,936 | £ 1,339 | £ 2,759 | £ (2,074) | £ 2,239 | £ 4,263 | £ 673 |
Profit after taxation for the year | 8,372 | 8,422 | 8,422 | (50) | |||
Other comprehensive (expense)/income for the year | (487) | (520) | 25 | (495) | 8 | ||
Total comprehensive income for the year | 7,885 | 7,902 | 25 | 7,927 | (42) | ||
Distributions to non-controlling interests | (237) | (237) | |||||
Dividends to shareholders | (3,874) | (3,874) | (3,874) | ||||
Gains on transfer of net assets into Consumer Healthcare Joint Venture | 2,891 | 2,891 | 2,891 | ||||
Consumer Healthcare Joint Venture put option | (6,204) | (6,204) | (6,204) | ||||
Changes in non-controllinginterests | 3,370 | 3,370 | |||||
Loss on transfer of equity investment to investment in associate | (229) | (229) | (229) | ||||
Ordinary Shares issued | 73 | 1 | 72 | 73 | |||
Ordinary Shares acquired by ESOP Trusts | (99) | (99) | (99) | ||||
Write-down of shares held by ESOP Trusts | (175) | 175 | |||||
Share-based incentive plans | 356 | 356 | 356 | ||||
Tax on share-based incentive plans | 10 | 10 | 10 | ||||
Equity at end of period at Dec. 31, 2015 | 8,878 | 1,340 | 2,831 | (1,397) | 2,340 | 5,114 | 3,764 |
Profit after taxation for the year | 1,062 | 912 | 912 | 150 | |||
Other comprehensive (expense)/income for the year | 962 | 284 | 75 | 359 | 603 | ||
Total comprehensive income for the year | 2,024 | 1,196 | 75 | 1,271 | 753 | ||
Distributions to non-controlling interests | (534) | (534) | |||||
Dividends to shareholders | (4,850) | (4,850) | (4,850) | ||||
Recognition of liabilities with non-controlling interests | (2,172) | (2,013) | (2,013) | (159) | |||
De-recognition of liabilities with non-controlling interests | 1,244 | 1,244 | 1,244 | ||||
Changes in non-controllinginterests | 32 | 17 | 17 | 15 | |||
Ordinary Shares issued | 89 | 2 | 87 | 89 | |||
Ordinary Shares acquired by ESOP Trusts | (74) | 36 | 466 | (576) | (74) | ||
Write-down of shares held by ESOP Trusts | (381) | 381 | |||||
Share-based incentive plans | 319 | 319 | 319 | ||||
Tax on share-based incentive plans | 7 | 7 | 7 | ||||
Equity at end of period at Dec. 31, 2016 | 4,963 | 1,342 | 2,954 | (5,392) | 2,220 | 1,124 | 3,839 |
Profit after taxation for the year | 2,169 | 1,532 | 1,532 | 637 | |||
Other comprehensive (expense)/income for the year | 713 | 899 | (37) | 862 | (149) | ||
Total comprehensive income for the year | 2,882 | 2,431 | (37) | 2,394 | 488 | ||
Distributions to non-controlling interests | (789) | (789) | |||||
Contribution from non-controlling interests | 21 | 21 | |||||
Dividends to shareholders | (3,906) | (3,906) | (3,906) | ||||
Changes in non-controllinginterests | (2) | (2) | |||||
Ordinary Shares issued | 56 | 1 | 55 | 56 | |||
Ordinary Shares acquired by ESOP Trusts | (65) | 10 | 581 | (656) | (65) | ||
Write-down of shares held by ESOP Trusts | (520) | 520 | |||||
Share-based incentive plans | 333 | 333 | 333 | ||||
Tax on share-based incentive plans | (4) | (4) | (4) | ||||
Equity at end of period at Dec. 31, 2017 | £ 3,489 | £ 1,343 | £ 3,019 | £ (6,477) | £ 2,047 | £ (68) | £ 3,557 |
Consolidated cash flow statemen
Consolidated cash flow statement - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flow from operating activities | |||
Profit after taxation for the year | £ 2,169 | £ 1,062 | £ 8,372 |
Adjustments reconciling profit after tax to operating cash flows | 6,089 | 7,044 | (3,741) |
Cash generated from operations | 8,258 | 8,106 | 4,631 |
Taxation paid | (1,340) | (1,609) | (2,062) |
Net cash inflow from operating activities | 6,918 | 6,497 | 2,569 |
Cash flow from investing activities | |||
Purchase of property, plant and equipment | (1,545) | (1,543) | (1,380) |
Proceeds from sale of property, plant and equipment | 281 | 98 | 72 |
Purchase of intangible assets | (657) | (809) | (521) |
Proceeds from sale of intangible assets | 48 | 283 | 236 |
Purchase of equity investments | (80) | (96) | (82) |
Proceeds from sale of equity investments | 64 | 683 | 357 |
Contingent consideration paid | (91) | (73) | (338) |
Purchase of businesses, net of cash acquired | 17 | (3,203) | |
Disposal of businesses | 282 | 72 | 10,246 |
Investments in associates and joint ventures | (15) | (11) | (16) |
Proceeds from disposal of subsidiary and interest in associate | 196 | 564 | |
Decrease/(increase) in liquid investments | 4 | (2) | |
Interest received | 64 | 68 | 99 |
Dividends from associates, joint ventures and equity investments | 6 | 42 | 5 |
Net cash (outflow)/inflow from investing activities | (1,443) | (1,269) | 6,037 |
Cash flow from financing activities | |||
Shares acquired by ESOP Trusts | (65) | (74) | (99) |
Issue of share capital | 56 | 89 | 73 |
Purchase of non-controllinginterests | (29) | ||
Increase in long-term loans | 2,233 | ||
(Repayment of)/Increase in short-term loans | (3,200) | 148 | (2,412) |
Net repayment of obligations under finance leases | (23) | (18) | (25) |
Interest paid | (781) | (732) | (762) |
Dividends paid to shareholders | (3,906) | (4,850) | (3,874) |
Distributions to non-controlling interests | (779) | (534) | (237) |
Contributions from non-controlling interests | 21 | ||
Other financing cash flows | 93 | (421) | 233 |
Net cash outflow from financing activities | (6,380) | (6,392) | (7,103) |
(Decrease)/increase in cash and bank overdrafts | (905) | (1,164) | 1,503 |
Cash and bank overdrafts at beginning of year | 4,605 | 5,486 | 4,028 |
Exchange adjustments | (100) | 283 | (45) |
(Decrease)/increase in cash and bank overdrafts | (905) | (1,164) | 1,503 |
Cash and bank overdrafts at end of year | 3,600 | 4,605 | 5,486 |
Cash and bank overdrafts at end of year comprise: | |||
Cash and cash equivalents | 3,833 | 4,897 | 5,830 |
Overdrafts | (233) | (292) | (344) |
Cash and bank overdrafts at end of year | £ 3,600 | £ 4,605 | £ 5,486 |
Presentation of the financial s
Presentation of the financial statements | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Presentation of the financial statements | 1. Presentation of the financial statements Description of business GSK is a major global healthcare group which is engaged in the creation and discovery, development, manufacture and marketing of pharmaceutical products, vaccines, over-the-counter immuno-inflammation, Compliance with applicable law and IFRS The financial statements have been prepared in accordance with the Companies Act 2006, Article 4 of the IAS Regulation and International Financial Reporting Standards (IFRS) and related interpretations, as adopted by the European Union. The financial statements are also in compliance with IFRS as issued by the International Accounting Standards Board. Composition of financial statements The consolidated financial statements are drawn up in Sterling, the functional currency of GlaxoSmithKline plc, and in accordance with IFRS accounting presentation. The financial statements comprise: • Consolidated income statement • Consolidated statement of comprehensive income • Consolidated balance sheet • Consolidated statement of changes in equity • Consolidated cash flow statement • Notes to the financial statements. Composition of the Group A list of the subsidiaries and associates which, in the opinion of the Directors, principally affected the amount of profit or net assets of the Group is given in Note 44, ‘Principal Group companies’. Accounting principles and policies The financial statements have been prepared using the historical cost convention modified by the revaluation of certain items, as stated in the accounting policies, and on a going concern basis. The financial statements have been prepared in accordance with the Group’s accounting policies approved by the Board and described in Note 2, ‘Accounting principles and policies’. Information on the application of these accounting policies, including areas of estimation and judgement is given in Note 3, ‘Key accounting judgements and estimates’. The preparation of the financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Implementation of new accounting standards and interpretations An agenda decision by the IFRS Interpretations Committee in September 2017 clarified that charges for interest on tax should be reported within finance expense and certain penalties on tax settlements should be reported within administrative expenses. Previously GSK had reported these charges within the overall tax charge in the income statement or other comprehensive income, as appropriate. GSK has adopted the revised basis of reporting in 2017 and, as a result of a number of settlements during the year, has recorded credits for interest on tax for 2017 of £24 million in finance expense. There were no material charges for penalties on settlements during 2017 that required adjustment. Accrued interest payable on tax at 31 December 2017 was £52 million, and this is included within trade and other payables on the Group balance sheet. The impact on prior years was not material and so prior year amounts have not been restated. Financial period These financial statements cover the financial year from 1 January to 31 December 2017, with comparative figures for the financial years from 1 January to 31 December 2016 and, where appropriate, from 1 January to 31 December 2015. Parent company financial statements The financial statements of the parent company, GlaxoSmithKline plc, have been prepared in accordance with UK GAAP and with UK accounting presentation. The company balance sheet is presented on page 239 and the accounting policies are given on page 240. |
Accounting principles and polic
Accounting principles and policies | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Accounting principles and policies | 2. Accounting principles and policies Consolidation The consolidated financial statements include: • the assets and liabilities, and the results and cash flows, of the company and its subsidiaries, including ESOP Trusts • the Group’s share of the results and net assets of associates and joint ventures • the Group’s share of assets, liabilities, revenue and expenses of joint operations. The financial statements of entities consolidated are made up to 31 December each year. Entities over which the Group has the power to direct the relevant activities so as to affect the returns to the Group, generally through control over the financial and operating policies, are accounted for as subsidiaries. Where the Group has the ability to exercise joint control over, and rights to the net assets of, entities, the entities are accounted for as joint ventures. Where the Group has the ability to exercise joint control over an arrangement, but has rights to specified assets and obligations for specified liabilities of the arrangement, the arrangement is accounted for as a joint operation. Where the Group has the ability to exercise significant influence over entities, they are accounted for as associates. The results and assets and liabilities of associates and joint ventures are incorporated into the consolidated financial statements using the equity method of accounting. The Group’s rights to assets, liabilities, revenue and expenses of joint operations are included in the consolidated financial statements in accordance with those rights and obligations. Interests acquired in entities are consolidated from the date the Group acquires control and interests sold are de-consolidated Transactions and balances between subsidiaries are eliminated and no profit before tax is taken on sales between subsidiaries until the products are sold to customers outside the Group. The relevant proportion of profits on transactions with joint ventures, joint operations and associates is also deferred until the products are sold to third parties. Transactions with non-controlling Business combinations Business combinations are accounted for using the acquisition accounting method. Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. The consideration transferred is measured at fair value and includes the fair value of any contingent consideration. Where the consideration transferred, together with the non-controlling Goodwill is capitalised as a separate item in the case of subsidiaries and as part of the cost of investment in the case of joint ventures and associates. Goodwill is denominated in the currency of the operation acquired. Where the cost of acquisition is below the fair value of the net assets acquired, the difference is recognised directly in the income statement. Where not all of the equity of a subsidiary is acquired the non-controlling non-controlling case-by-case Foreign currency translation Foreign currency transactions are booked in the functional currency of the Group company at the exchange rate ruling on the date of transaction. Foreign currency monetary assets and liabilities are retranslated into the functional currency at rates of exchange ruling at the balance sheet date. Exchange differences are included in the income statement. On consolidation, assets and liabilities, including related goodwill, of overseas subsidiaries, associates and joint ventures, are translated into Sterling at rates of exchange ruling at the balance sheet date. The results and cash flows of overseas subsidiaries, associates and joint ventures are translated into Sterling using average rates of exchange. Exchange adjustments arising when the opening net assets and the profits for the year retained by overseas subsidiaries, associates and joint ventures are translated into Sterling, less exchange differences arising on related foreign currency borrowings which hedge the Group’s net investment in these operations, are taken to a separate component of equity. When translating into Sterling the assets, liabilities, results and cash flows of overseas subsidiaries, associates and joint ventures which are reported in currencies of hyper-inflationary Revenue Revenue is recognised in the income statement when goods or services are supplied or made available to external customers against orders received, title and risk of loss is passed to the customer, reliable estimates can be made of relevant deductions and all relevant obligations have been fulfilled, such that the earnings process is regarded as being complete. Turnover represents net invoice value after the deduction of discounts and allowances given and accruals for estimated future rebates and returns. The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions. Market conditions are evaluated using wholesaler and other third-party analyses, market research data and internally generated information. Value added tax and other sales taxes are excluded from revenue. Where the Group co-promotes co-promotion co-promotion co-promotion Royalty income is recognised on an accruals basis in accordance with the terms of the relevant licensing agreements. Expenditure Expenditure is recognised in respect of goods and services received when supplied in accordance with contractual terms. Provision is made when an obligation exists for a future liability in respect of a past event and where the amount of the obligation can be reliably estimated. Manufacturing start-up Restructuring costs are recognised and provided for, where appropriate, in respect of the direct expenditure of a business reorganisation where the plans are sufficiently detailed and well advanced, and where appropriate communication to those affected has been undertaken. Research and development Research and development expenditure is charged to the income statement in the period in which it is incurred. Development expenditure is capitalised when the criteria for recognising an asset are met, usually when a regulatory filing has been made in a major market and approval is considered highly probable. Property, plant and equipment used for research and development is capitalised and depreciated in accordance with the Group’s policy. Environmental expenditure Environmental expenditure related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible is charged to the income statement. The Group recognises its liability on a site-by-site clean-up Legal and other disputes Provision is made for the anticipated settlement costs of legal or other disputes against the Group where an outflow of resources is considered probable and a reliable estimate can be made of the likely outcome. In addition, provision is made for legal or other expenses arising from claims received or other disputes. In respect of product liability claims related to certain products, there is sufficient history of claims made and settlements to enable management to make a reliable estimate of the provision required to cover unasserted claims. In certain cases, an incurred but not reported (IBNR) actuarial technique is used to determine this estimate. The Group may become involved in legal proceedings, in respect of which it is not possible to make a reliable estimate of the expected financial effect, if any, that could result from ultimate resolution of the proceedings. In these cases, appropriate disclosure about such cases would be included but no provision would be made. Costs associated with claims made by the Group against third parties are charged to the income statement as they are incurred. Pensions and other post-employment benefits The costs of providing pensions under defined benefit schemes are calculated using the projected unit credit method and spread over the period during which benefit is expected to be derived from the employees’ services, consistent with the advice of qualified actuaries. Pension obligations are measured as the present value of estimated future cash flows discounted at rates reflecting the yields of high quality corporate bonds. Pension scheme assets are measured at fair value at the balance sheet date. The costs of other post-employment liabilities are calculated in a similar way to defined benefit pension schemes and spread over the period during which benefit is expected to be derived from the employees’ services, in accordance with the advice of qualified actuaries. Actuarial gains and losses and the effect of changes in actuarial assumptions, are recognised in the statement of comprehensive income in the year in which they arise. The Group’s contributions to defined contribution plans are charged to the income statement as incurred. Employee share plans Incentives in the form of shares are provided to employees under share option and share award schemes. The fair values of these options and awards are calculated at their grant dates using a Black-Scholes option pricing model and charged to the income statement over the relevant vesting periods. The Group provides finance to ESOP Trusts to purchase company shares to meet the obligation to provide shares when employees exercise their options or awards. Costs of running the ESOP Trusts are charged to the income statement. Shares held by the ESOP Trusts are deducted from other reserves. A transfer is made between other reserves and retained earnings over the vesting periods of the related share options or awards to reflect the ultimate proceeds receivable from employees on exercise. Property, plant and equipment Property, plant and equipment (PP&E) is stated at the cost of purchase or construction, less provisions for depreciation and impairment. Financing costs are capitalised within the cost of qualifying assets in construction. Depreciation is calculated to write off the cost less residual value of PP&E, excluding freehold land, using the straight-line basis over the expected useful life. Residual values and lives are reviewed, and where appropriate adjusted annually. The normal expected useful lives of the major categories of PP&E are: Freehold buildings 20 to 50 years Leasehold land and buildings Lease term or 20 to 50 years Plant and machinery 10 to 20 years Equipment and vehicles 3 to 10 years On disposal of PP&E, the cost and related accumulated depreciation and impairments are removed from the financial statements and the net amount, less any proceeds, is taken to the income statement. Leases Leasing agreements which transfer to the Group substantially all the benefits and risks of ownership of an asset are treated as finance leases, as if the asset had been purchased outright. The assets are included in PP&E or computer software and the capital elements of the leasing commitments are shown as obligations under finance leases. Assets held under finance leases are depreciated on a basis consistent with similar owned assets or the lease term, if shorter. The interest element of the lease rental is included in the income statement. All other leases are operating leases and the rental costs are charged to the income statement on a straight-line basis over the lease term. Goodwill Goodwill is stated at cost less impairments. Goodwill is deemed to have an indefinite useful life and is tested for impairment at least annually. Where the fair value of the interest acquired in an entity’s assets, liabilities and contingent liabilities exceeds the consideration paid, this excess is recognised immediately as a gain in the income statement. Other intangible assets Intangible assets are stated at cost less provisions for amortisation and impairments. Licences, patents, know-how non-exclusivity. know-how Acquired brands are valued independently as part of the fair value of businesses acquired from third parties where the brand has a value which is substantial and long term and where the brands either are contractual or legal in nature or can be sold separately from the rest of the businesses acquired. Brands are amortised over their estimated useful lives of up to 20 years, except where it is considered that the useful economic life is indefinite. The costs of acquiring and developing computer software for internal use and internet sites for external use are capitalised as intangible fixed assets where the software or site supports a significant business system and the expenditure leads to the creation of a durable asset. ERP systems software is amortised over seven to ten years and other computer software over three to five years. Impairment of non-current The carrying values of all non-current Impairments of goodwill are not reversed. Impairment losses on other non-current Investments in associates, joint ventures and joint operations Investments in associates and joint ventures are carried in the consolidated balance sheet at the Group’s share of their net assets at date of acquisition and of their post-acquisition retained profits or losses together with any goodwill arising on the acquisition. The Group recognises its rights to assets, liabilities, revenue and expenses of joint operations. Available-for-sale Liquid investments and other investments are classified as available-for-sale available-for-sale On disposal or impairment of the investments, any gains and losses that have been deferred in other comprehensive income are reclassified to the income statement. Dividends on equity investments are recognised in the income statement when the Group’s right to receive payment is established. Equity investments are recorded in non-current Purchases and sales of equity investments are accounted for on the trade date and purchases and sales of other available-for-sale Inventories Inventories are included in the financial statements at the lower of cost (including raw materials, direct labour, other direct costs and related production overheads) and net realisable value. Cost is generally determined on a first in, first out basis. Pre-launch Trade receivables Trade receivables are carried at original invoice amount less any provisions for doubtful debts. Provisions are made where there is evidence of a risk of non-payment, Subsequent recoveries of amounts previously provided for are credited to the income statement. Long-term receivables are discounted where the effect is material. Borrowings All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing. Taxation Current tax is provided at the amounts expected to be paid applying tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is provided in full, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is provided using rates of tax that have been enacted or substantively enacted by the balance sheet date. Derivative financial instruments and hedging Derivative financial instruments are used to manage exposure to market risks. The principal derivative instruments used by GSK are foreign currency swaps, interest rate swaps, foreign exchange forward contracts and options. The Group does not hold or issue derivative financial instruments for trading or speculative purposes. Derivative financial instruments are classified as held-for-trading Changes in the fair value of derivatives designated as cash flow hedges are recognised in other comprehensive income to the extent that the hedges are effective. Ineffective portions are recognised in profit or loss immediately. Amounts deferred in other comprehensive income are reclassified to the income statement when the hedged item affects profit or loss. Net investment hedges are accounted for in a similar way to cash flow hedges. Changes in the fair value of derivatives designated as fair value hedges are recorded in the income statement, together with the changes in the fair value of the hedged asset or liability. Changes in the fair value of any derivative instruments that do not qualify for hedge accounting are recognised immediately in the income statement. Discounting Where the time value of money is material, balances are discounted to current values using appropriate discount rates. The unwinding of the discounts is recorded in finance income and finance expense. |
Key accounting judgements and e
Key accounting judgements and estimates | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Key accounting judgements and estimates | 3. Key accounting judgements and estimates In preparing the financial statements, management is required to make judgements about when or how items should be recognised in the financial statements and estimates and assumptions that affect the amounts of assets, liabilities, revenue and expenses reported in the financial statements. Actual amounts and results could differ from those estimates. The following are considered to be the key accounting judgements and estimates made. Turnover Reported Group turnover for 2017 was £30,186 million (2016 – £27,889 million). Gross turnover is reduced by rebates, discounts, allowances and product returns given or expected to be given, which vary by product arrangements and buying groups. These arrangements with purchasing organisations are dependent upon the submission of claims some time after the initial recognition of the sale. Accruals are made at the time of sale for the estimated rebates, discounts or allowances payable or returns to be made, based on available market information and historical experience. Because the amounts are estimated they may not fully reflect the final outcome, and the amounts are subject to change dependent upon, amongst other things, the types of buying group and product sales mix. The level of accrual for rebates and returns is reviewed and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions. Market conditions are evaluated using wholesaler and other third-party analyses, market research data and internally generated information. Future events could cause the assumptions on which the accruals are based to change, which could affect the future results of the Group. Taxation The tax charge for the year was £1,356 million (2016 – £877 million). At December 2017, current tax payable was £995 million (2016 – £1,305 million), non-current Deferred tax assets are recognised when the judgement is made that it is probable that future taxable profits will be available against which the temporary differences can be utilised, based on management’s assumptions relating to the amounts and timing of future taxable profits. Factors affecting the tax charge in future years, in particular, US tax reform, are set out in Note 14, ‘Taxation’. A 1% change in the Group’s effective tax rate in 2017 would have changed the Total tax charge for the year by approximately £35 million. The Group has open tax issues with a number of revenue authorities. Where management makes a judgement that an outflow of funds is probable and a reliable estimate of the outcome of the dispute can be made, provision is made for the best estimate of the liability. In estimating any such liability GSK applies a risk-based approach which takes into account, as appropriate, the probability that the Group would be able to obtain compensatory adjustments under international tax treaties. These estimates take into account the specific circumstances of each dispute and relevant external advice, are inherently judgemental and could change substantially over time as each dispute progresses and new facts emerge. GSK continues to believe that it has made adequate provision for the liabilities likely to arise from open assessments. At 31 December 2017, the Group had recognised provisions of £1,175 million in respect of uncertain tax positions (2016 – £1,892 million). Where open issues exist the ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of negotiations with the relevant tax authorities or, if necessary, litigation proceedings. Legal and other disputes Legal costs for the year were £166 million (2016 – £162 million). At 31 December 2017 provisions for legal and other disputes amounted to £186 million (2016 – £344 million). The Group provides for anticipated settlement costs where management makes a judgement that an outflow of resources is probable and a reliable estimate can be made of the likely outcome of the dispute and legal and other expenses arising from claims against the Group. The estimated provisions take into account the specific circumstances of each dispute and relevant external advice, are inherently judgemental and could change substantially over time as each dispute progresses and new facts emerge. Details of the status and various uncertainties involved in the significant unresolved disputes are set out in Note 45, ‘Legal proceedings’. The company’s Directors, having taken legal advice, have established provisions after taking into account the relevant facts and circumstances of each matter and in accordance with accounting requirements. In respect of product liability claims related to certain products there is sufficient history of claims made and settlements to enable management to make a reliable estimate of the provision required to cover unasserted claims. The Group may become involved in legal proceedings, in respect of which it is not possible to make a reliable estimate of the expected financial effect, if any, that could result from ultimate resolution of the proceedings. In these cases, appropriate disclosure about such cases would be provided, but no provision would be made and no contingent liability can be quantified. The ultimate liability for legal claims may vary from the amounts provided and is dependent upon the outcome of litigation proceedings, investigations and possible settlement negotiations. The position could change over time and, therefore, there can be no assurance that any losses that result from the outcome of any legal proceedings will not exceed the amount of the provisions reported in the Group’s financial statements by a material amount. Intangible asset impairments At 31 December 2017, intangible assets were £17,562 million (2016 – £18,776 million). Impairment tests on intangible assets are undertaken if events occur which call into question the carrying values of the assets. In addition, intangible assets with indefinite useful lives, or which are not yet available for use, are subject to annual impairment tests. Valuations for impairment tests are based on established market multiples or risk-adjusted future cash flows over the estimated useful life of the asset, where limited, discounted using appropriate discount rates as set out in Note 19, ‘Other intangible assets’. The assumptions relating to future cash flows, estimated useful lives and discount rates are based on business forecasts and are therefore inherently judgemental. Future events could cause the assumptions used in these impairment tests to change with a consequent adverse effect on the future results of the Group. Contingent consideration and put option liabilities The 2017 income statement charge for contingent consideration and put option liabilities was £2,134 million (2016 – £3,991 million). At 31 December 2017, the liability for contingent consideration amounted to £6,172 million (2016 – £5,896 million). Of this amount, £5,542 million (2016 – £5,304 million) related to the acquisition of the former Shionogi-ViiV Healthcare joint venture in 2012 and £584 million (2016 – £545 million) related to the acquisition of the Vaccines business from Novartis in 2016. Any contingent consideration included in the consideration payable for a business combination is recorded at fair value at the date of acquisition. These fair values are generally based on risk-adjusted future cash flows discounted using appropriate post-tax During 2015, the Group granted a put option to Novartis in respect of Novartis’ shareholding in the Consumer Healthcare Joint Venture. In certain circumstances, Novartis has the right to require GSK to acquire its 36.5% shareholding in the Consumer Healthcare Joint Venture at a market-based valuation. This right is exercisable in certain windows from 2018 to 2035 and may be exercised either in respect of Novartis’ entire shareholding or in up to four instalments. GSK has recognised a financial liability of £8,606 million at 31 December 2017 (2016 – £7,420 million). This represents the present value of the redemption value estimated by GSK in the event of full exercise of the right by Novartis and is calculated by applying relevant public company multiples, with no premium or discount, to forecast future profits in accordance with the shareholder agreements. Sensitivity analysis is given in Note 27, ‘Trade and other payables’. Pfizer may request an IPO of ViiV Healthcare at any time and if either GSK does not consent to such IPO or an offering is not completed within nine months, Pfizer could require GSK to acquire its shareholding. A liability for the put option was recognised on the Group’s balance sheet during 2016 at an initial value of £1,070 million. GSK also recognised liabilities for the future preferential dividends anticipated to become payable to Pfizer and Shionogi on the Group’s balance sheet during 2016. The liability for the Pfizer put option, which is derived from an internal valuation of the ViiV Healthcare business, utilising both discounted forecast future cash flow and multiples-based methodologies amounted to £1,304 million at 31 December 2017 (2016 – £1,319 million). Sensitivity analysis is also given in Note 27, ‘Trade and other payables’. Pensions and other post-employment benefits The costs of providing pensions and other post-employment benefits are assessed on the basis of assumptions selected by management. These assumptions include future earnings and pension increases, discount rates, expected long-term rates of return on assets and mortality rates, and are disclosed in Note 28, ‘Pensions and other post-employment benefits’. Where a surplus on a defined benefit scheme arises, or there is potential for a surplus to arise from committed future contributions, the rights of the Trustees to prevent the Group obtaining a refund of that surplus in the future are considered in determining whether it is necessary to restrict the amount of the surplus that is recognised. Discount rates are derived from AA rated corporate bond yields except in countries where there is no deep market in corporate bonds where government bond yields are used. A sensitivity analysis is provided in Note 28, ‘Pensions and other post-employment benefits’, but a 0.25% reduction in the discount rate would lead to an increase in the net pension deficit of approximately £800 million and an increase in the annual pension cost of approximately £29 million. The selection of different assumptions could affect the future results of the Group. |
New accounting requirements
New accounting requirements | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
New accounting requirements | 4. New accounting requirements The following new and amended accounting standards have been issued by the IASB and are likely to affect future Annual Reports. IFRS 15 ‘Revenue from contracts with customers’ was issued in May 2014 and has been implemented by the Group from 1 January 2018. The Standard provides a single, principles-based approach to the recognition of revenue from all contracts with customers. It focuses on the identification of performance obligations in a contract and requires revenue to be recognised when or as those performance obligations are satisfied. The new Standard is not expected to have a material impact on the amount or timing of recognition of reported revenue. In its financial statements for 2018, GSK will adopt IFRS 15 applying the modified retrospective approach, with a cumulative adjustment to decrease equity at 1 January 2018 by approximately £4 million. In accordance with the requirements of the Standard where the modified retrospective approach is adopted, prior year results will not be restated. IFRS 9 ‘Financial instruments’ was issued in its final form in July 2014 and has been implemented by the Group from 1 January 2018. The Standard replaces the majority of IAS 39 and covers the classification, measurement and de-recognition The new Standard is not expected to have a material impact on reported results. In its financial statements for 2018, GSK will adopt IFRS 9 retrospectively, but with certain permitted exceptions. As a result, prior year results will not be restated, but there will be a cumulative adjustment to decrease equity at 1 January 2018 by approximately £11 million. IFRS 16 ‘Leases’ was issued in January 2016 and will be implemented by the Group from 1 January 2019. The Standard will replace IAS 17 ‘Leases’ and will require lease liabilities and ‘right of use’ assets to be recognised on the balance sheet for almost all leases. This is expected to result in a significant increase in both assets and liabilities recognised. The costs of operating leases currently included within operating costs will be split and the financing element of the charge will be reported within finance expense. Finance lease obligations at 31 December 2017 are set out in Note 31, ‘Net debt’ and the undiscounted commitments under non-cancellable The Group is assessing the potential impact of IFRS 16. IFRIC 23 ‘Uncertainty over income tax treatments’ was issued in June 2017 and will be implemented by the Group from 1 January 2019. The Interpretation clarifies that if it is considered probable that a tax authority will accept an uncertain tax treatment, the tax charge should be calculated on that basis. If it is not considered probable, the effect of the uncertainty should be estimated and reflected in the tax charge. In assessing the uncertainty, it is assumed that the tax authority will have full knowledge of all information related to the matter. The Group is continuing to assess the potential impact of the new Interpretation. |
Exchange rates
Exchange rates | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Exchange rates | 5. Exchange rates The Group uses the average of exchange rates prevailing during the period to translate the results and cash flows of overseas subsidiaries, joint ventures and associates into Sterling and period end rates to translate the net assets of those entities. The currencies which most influence these translations and the relevant exchange rates were as follows: 2017 2016 2015 Average rates: US$/£ 1.30 1.36 1.53 Euro/£ 1.15 1.23 1.37 Yen/£ 145 149 185 Period end rates: US$/£ 1.35 1.24 1.47 Euro/£ 1.13 1.17 1.36 Yen/£ 152 144 177 |
Segment information
Segment information | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Segment information | 6. Segment information Operating segments are reported based on the financial information provided to the Chief Executive Officer and the responsibilities of the Corporate Executive Team (CET). GSK reports results under four segments: Pharmaceuticals; Pharmaceuticals R&D; Vaccines and Consumer Healthcare, and individual members of the CET are responsible for each segment. The Group’s management reporting process allocates intra-Group profit on a product sale to the market in which that sale is recorded, and the profit analyses below have been presented on that basis. As explained on page 58, from 1 January 2017 only significant legal charges have been excluded from segment profit and reported within other reconciling items between segment profit and operating profit. Segment profits for 2016 and 2015 have been revised onto a comparable basis. Corporate and other unallocated turnover and costs included the results of several Vaccines and Consumer Healthcare products which were held for sale in a number of markets in order to meet anti-trust approval requirements in 2015, together with the costs of corporate functions. 2017 2016 2015 Turnover by segment £m £m £m Pharmaceuticals 17,276 16,104 14,157 Vaccines 5,160 4,592 3,656 Consumer Healthcare 7,750 7,193 6,038 Segment turnover 30,186 27,889 23,851 Corporate and other unallocated turnover – – 72 30,186 27,889 23,923 2017 2016 2015 Pharmaceuticals turnover by therapeutic area £m £m £m Respiratory 6,991 6,510 5,741 HIV 4,350 3,556 2,322 Immuno-inflammation 377 340 263 Established Pharmaceuticals 5,558 5,698 5,831 17,276 16,104 14,157 During 2017, the US operations of the Pharmaceuticals and Vaccines businesses made sales to three wholesalers of approximately £2,449 million (2016 – £2,139 million; 2015 – £1,574 million), £3,043 million (2016 – £2,691 million; 2015 – £2,471 million) and £2,356 million (2016 – £2,129 million; 2015 – £1,602 million) respectively, after allocating final-customer discounts to the wholesalers. 2017 2016 2015 Vaccines turnover by category £m £m £m Meningitis 890 662 326 Influenza 488 414 268 Shingles 22 – – Established Vaccines 3,760 3,516 3,062 5,160 4,592 3,656 2017 2016 2015 Consumer Healthcare turnover by category £m £m £m Wellness 4,001 3,726 2,970 Oral care 2,466 2,223 1,875 Nutrition 680 674 684 Skin health 603 570 509 7,750 7,193 6,038 2017 2016 2015 Segment profit £m £m £m Pharmaceuticals 8,667 7,976 6,449 Pharmaceuticals R&D (2,740 ) (2,488 ) (2,168 ) Pharmaceuticals, including R&D 5,927 5,488 4,281 Vaccines 1,644 1,429 958 Consumer Healthcare 1,373 1,116 684 Segment profit 8,944 8,033 5,923 Corporate and other unallocated costs (376 ) (362 ) (264 ) Other reconciling items between segment profit and operating profit (4,481 ) (5,073 ) 4,663 Operating profit 4,087 2,598 10,322 Finance income 65 72 104 Finance costs (734 ) (736 ) (757 ) Profit on disposal of interest in associates 94 – 843 Share of after tax profits of associates and joint ventures 13 5 14 Profit before taxation 3,525 1,939 10,526 Taxation (1,356 ) (877 ) (2,154 ) Profit after taxation for the year 2,169 1,062 8,372 Other reconciling items between segment profit and operating profit comprise items not specifically allocated to segment profit. These include impairment and amortisation of intangible assets, major restructuring charges, significant legal charges and expenses on the settlement of litigation and government investigations, disposals of businesses, products and associates, certain other items related to major acquisition and disposal activity and the pre-tax Depreciation and amortisation by segment 2017 2016 2015 Pharmaceuticals 551 440 303 Pharmaceuticals R&D 96 211 238 Pharmaceuticals, including R&D 647 651 541 Vaccines 405 315 253 Consumer Healthcare 135 126 140 Segment depreciation and amortisation 1,187 1,092 934 Corporate and other unallocated depreciation and amortisation 144 94 145 Other reconciling items between segment depreciation and amortisation and total depreciation and amortisation 591 588 551 Total depreciation and amortisation 1,922 1,774 1,630 PP&E, intangible asset and goodwill impairment by segment 2017 2016 2015 Pharmaceuticals 38 29 57 Pharmaceuticals R&D 10 88 105 Pharmaceuticals, including R&D 48 117 162 Vaccines 13 34 17 Consumer Healthcare 10 46 5 Segment impairment 71 197 184 Corporate and other unallocated impairment 3 24 18 Other reconciling items between segment impairment and total impairment 995 68 385 Total impairment 1,069 289 587 The other reconciling items between segment impairment and total impairment included £229 million related to the progressive withdrawal of Tanzeum. PP&E and intangible asset impairment reversals by segment 2017 2016 2015 Pharmaceuticals (13 ) (15 ) (8 ) Pharmaceuticals R&D (2 ) (10 ) (10 ) Pharmaceuticals, including R&D (15 ) (25 ) (18 ) Vaccines – (19 ) – Consumer Healthcare (1 ) (8 ) (4 ) Segment impairment reversals (16 ) (52 ) (22 ) Corporate and other unallocated impairment reversals – (26 ) (2 ) Other reconciling items between segment impairment reversals and total impairment reversals (36 ) (9 ) – Total impairment reversals (52 ) (87 ) (24 ) 2017 2016 Net assets by segment £m £m Pharmaceuticals 2,017 3,225 Pharmaceuticals R&D 522 572 Pharmaceuticals, including R&D 2,539 3,797 Vaccines 9,707 9,676 Consumer Healthcare 2,003 3,721 Segment net operating assets 14,249 17,194 Corporate and other unallocated net operating assets 868 (228 ) Net operating assets 15,117 16,966 Net debt (13,178 ) (13,804 ) Investments in associates and joint ventures 183 263 Derivative financial instruments 2 (38 ) Current and deferred taxation 1,252 1,361 Assets held for sale 113 215 Net assets 3,489 4,963 The Pharmaceuticals segment includes the Shionogi-ViiV Healthcare contingent consideration liability of £5,542 million (2016 – £5,304 million) and the Pfizer put option of £1,304 million (2016 – £1,319 million). The Consumer Healthcare segment includes the put option liability of £8,606 million (2016 – £7,420 million). Geographical information The UK is regarded as being the Group’s country of domicile. Turnover by location of customer 2017 £m 2016 2015 UK 940 1,056 1,102 US 11,263 10,197 8,222 International 17,983 16,636 14,599 External turnover 30,186 27,889 23,923 2017 2016 Non-current £m £m UK 6,824 7,060 US 6,841 7,802 International 20,901 21,234 Non-current 34,566 36,096 Non-current non-current |
Other operating income_(expense
Other operating income/(expense) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Other operating income/(expense) | 7. Other operating income/(expense) 2017 2016 2015 £m £m £m Impairment of equity investments (30 ) (47 ) (263 ) Disposal of equity investments 37 254 342 Disposal of businesses and assets 195 283 9,661 Fair value remeasurements on contingent consideration recognised in business combinations (1,012 ) (2,205 ) (1,965 ) Remeasurement of ViiV Healthcare put option liabilities and preferential dividends 13 (577 ) – Remeasurement of Consumer Healthcare put option liability (1,186 ) (1,133 ) (83 ) Fair value adjustments on derivative financial instruments 9 (3 ) 2 Other income/(expense) 9 23 21 (1,965 ) (3,405 ) 7,715 Disposal of businesses and assets in 2017 included a profit of £250 million on the disposal of the anaesthesia business to Aspen. Disposals in 2016 included milestone income of £152 million in relation to the divestment of ofatumumab and a number of other smaller divestments and in 2015 included the disposal of the Oncology business to Novartis for £9,228 million and an initial £200 million for the divestment of ofatumumab. Fair value remeasurements on contingent consideration recognised in business combinations included £909 million related to the acquisition of the former Shionogi-ViiV Healthcare joint venture and £53 million payable to Novartis related to the Vaccines acquisition. The fair value remeasurements on contingent consideration, the remeasurement of ViiV Healthcare put option liabilities and preferential dividends and the remeasurement of Consumer Healthcare put option liability include the additional charge arising from US tax reform of £666 million. |
Operating profit
Operating profit | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Operating profit | 8. Operating profit 2017 2016 2015 The following items have been included in operating profit: £m £m £m Employee costs (Note 9) 9,122 8,212 8,030 Advertising 1,351 1,265 1,059 Distribution costs 405 395 376 Depreciation of property, plant and equipment 988 978 892 Impairment of property, plant and equipment, net of reversals 327 180 346 Amortisation of intangible assets 934 796 738 Impairment of intangible assets, net of reversals 690 22 217 Net foreign exchange losses 215 53 47 Inventories: Cost of inventories included in cost of sales 8,526 8,093 7,602 Write-down of inventories 701 533 488 Reversal of prior year write-down of inventories (352 ) (145 ) (65 ) Operating lease rentals: Minimum lease payments 110 91 101 Contingent rents 4 4 8 Sub-lease 5 4 7 Fees payable to the company’s auditor and its associates in relation to the Group (see below) 29.2 29.7 33.1 The reversals of prior year write-downs of inventories principally arise from the reassessment of usage or demand expectations prior to inventory expiration. Net foreign exchange losses include a net loss of £109 million (2016 – £nil; 2015 – £nil) of exchange arising on the reclassification of exchange on liquidation or disposal of overseas subsidiaries. Included within operating profit are major restructuring charges of £1,056 million (2016 – £970 million; 2015 – £1,891 million), see Note 10, ‘Major restructuring costs’. Fees payable to the company’s auditor and its associates: 2017 2016 2015 Audit of parent company and consolidated financial statements 7.0 5.8 7.5 Audit of the company’s subsidiaries 16.2 16.4 16.3 Attestation under s.404 of Sarbanes-Oxley Act 2002 4.5 4.4 4.3 Audit and audit-related services 27.7 26.6 28.1 Taxation compliance 0.2 0.2 0.3 Taxation advice 0.1 1.8 3.2 Other assurance services 1.0 0.3 1.1 All other services 0.2 0.8 0.4 29.2 29.7 33.1 The other assurance services provided by the auditor relate to agreed upon procedures and other assurance services outside of statutory audit requirements. All other services provided by the auditor primarily related to advisory services for the year ended 31 December 2017. In addition to the above, fees paid in respect of the GSK pension schemes were: 2017 2016 2015 Audit 0.3 0.4 0.3 Other services 0.1 — — |
Employee costs
Employee costs | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Employee costs | 9. Employee costs 2017 2016 2015 £m £m £m Wages and salaries 7,116 6,391 6,132 Social security costs 802 733 633 Pension and other post-employment costs, including augmentations (Note 28) 616 541 467 Cost of share-based incentive plans 347 338 349 Severance and other costs from integration and restructuring activities 241 209 449 9,122 8,212 8,030 The increase in wages and salaries included the impact of movements in exchange rates. The Group provides benefits to employees, commensurate with local practice in individual countries, including, in some markets, healthcare insurance, subsidised car schemes and personal life assurance. The cost of share-based incentive plans is analysed as follows: 2017 2016 2015 Share Value Plan 276 271 307 Performance Share Plan 47 39 26 Share option plans 4 4 4 Cash settled and other plans 20 24 12 347 338 349 The average monthly number of persons employed by the Group (including Directors) during the year was: 2017 2016 2015 Manufacturing 38,632 38,611 37,025 Selling, general and administration 49,141 49,961 52,121 Research and development 11,576 11,255 12,046 99,349 99,827 101,192 The average monthly number of Group employees excludes temporary and contract staff. The numbers of Group employees at the end of each financial year are given in the financial record on page 250. The monthly average number of persons employed by GlaxoSmithKline plc in 2017 was nil (2016 – nil). The compensation of the Directors and Senior Management (members of the CET) in aggregate, was as follows: 2017 2016 2015 Wages and salaries 26 25 23 Social security costs 4 4 2 Pension and other post-employment costs 3 2 3 Cost of share-based incentive plans 22 15 18 55 46 46 |
Major restructuring costs
Major restructuring costs | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Major restructuring costs | 10. Major restructuring costs Major restructuring costs charged in arriving at operating profit include restructuring costs arising under the Major Change programme initiated in 2013, under the Pharmaceuticals Restructuring Programme announced in October 2014, following the Novartis transaction completed in 2015 and the CEO Strategic Initiatives Programme announced in July 2017. The total restructuring costs of £1,056 million in 2017 were incurred in the following areas: • Restructuring of the R&D organisation, predominantly in the United Kingdom and North America. • Projects to simplify or eliminate processes leading to staff reductions in support functions. • Restructuring of the Pharmaceuticals commercial operating model and supply chain leading to staff reductions in sales force and administration. • Transformation of the manufacturing and Vaccines businesses to deliver a step change in quality, cost and productivity. The costs charged to operating profit under these programmes were as follows: 2017 2016 2015 Increase in provision for major restructuring programmes (see Note 29) 259 163 718 Amount of provision reversed unused (see Note 29) (43 ) (140 ) (44 ) Impairment losses recognised 278 158 419 Other non-cash 247 108 51 Other cash costs 315 681 747 1,056 970 1,891 Provision reversals of £43 million (2016 – £140 million; 2015 – £44 million) reflected the release of legacy support function and Novartis integration provisions. Asset impairments of £278 million (2016 – £158 million; 2015 – £419 million) and other non-cash non-cash |
Finance income
Finance income | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Finance income | 11. Finance income 2017 2016 2015 £m £m £m Interest income arising from: cash and cash equivalents 60 67 71 available-for-sale 2 1 1 derivatives at fair value through profit or loss — — 24 loans and receivables 1 2 3 Fair value adjustments on derivatives at fair value through profit or loss 2 2 5 65 72 104 All derivatives accounted for at fair value through profit or loss other than designated and effective hedging instruments (see Note 42, ‘Financial instruments and related disclosures’) are classified as held-for-trading |
Finance expense
Finance expense | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Finance expense | 12. Finance expense 2017 2016 2015 £m £m £m Interest expense arising on: financial liabilities at amortised cost (698 ) (671 ) (655 ) derivatives at fair value through profit or loss (22 ) (30 ) (64 ) Fair value movements on other derivatives at fair value through profit or loss (4 ) (3 ) (6 ) Reclassification of cash flow hedge from other comprehensive income — (1 ) (2 ) Unwinding of discounts on provisions (16 ) (16 ) (16 ) Other finance expense 6 (15 ) (14 ) (734 ) (736 ) (757 ) All derivatives accounted for at fair value through profit or loss, other than designated and effective hedging instruments (see Note 42, ‘Financial instruments and related disclosures’), are classified as held-for-trading |
Associates and joint ventures
Associates and joint ventures | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Associates and joint ventures | 13. Associates and joint ventures The Group’s share of after tax profits and losses of associates and joint ventures is set out below: 2017 2016 2015 Share of after tax profits of associates 16 9 16 Share of after tax losses of joint ventures (3 ) (4 ) (2 ) 13 5 14 At 31 December 2017, the Group held one significant associate, Innoviva, Inc. Summarised income statement information in respect of Innoviva is set out below for the periods in which the Group accounted for its investment in Innoviva as an associate. The Group’s 2017 share of after tax profits of associates and other comprehensive income includes a profit of £18 million and other comprehensive income of £nil in respect of Innoviva. Since 1 September 2017 2016 2015 £m £m £m Turnover 165 98 20 Profit after taxation 103 44 4 Other comprehensive income — — — Total comprehensive income 103 44 4 The results of Innoviva included in the summarised income statement information above represent the estimated earnings of Innoviva in the relevant periods. Innoviva’s turnover is from royalty income from GSK in relation to Relvar/Breo Ellipta, Anoro Ellipta and Trelegy Ellipta sales. Aggregated financial information in respect of GSK’s share of other associated undertakings and joint ventures is set out below: 2017 2016 2015 Share of turnover 252 133 188 Share of after tax (losses)/profits (5 ) (1 ) 12 Share of other comprehensive income — — 25 Share of total comprehensive (expense)/income (5 ) (1 ) 37 The Group’s sales to associates and joint ventures were £41 million in 2017 (2016 – £43 million; 2015 – £41 million). |
Taxation
Taxation | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Taxation | 14. Taxation The Group’s tax charge is the sum of the total current and deferred tax expense. Taxation charge based on profits for the year 2017 2016 2015 UK current year charge 199 241 156 Rest of World current year charge 1,928 1,326 2,924 Credit in respect of prior periods (508 ) (149 ) (508 ) Total current taxation 1,619 1,418 2,572 Total deferred taxation (263 ) (541 ) (418 ) Total tax 1,356 877 2,154 In 2017, GSK made payments of £212 million in UK corporation tax to HMRC. These amounts are for UK corporation tax only, and do not include the various other business taxes borne in the UK by GSK each year. The deferred tax credit in 2017 reflected the revaluation of existing deferred tax liabilities to reflect a lower Swiss tax rate applicable following Swiss tax reform, and an increase in deferred tax assets related to intra-Group profit on inventory. The impact of these items was partly offset by the revaluation of existing deferred tax assets to reflect the lower headline US tax rate following enactment of US tax reform. In comparison to 2017, the 2016 and 2015 net deferred tax credits were impacted to a greater extent by remeasurements of the contingent consideration in relation to the former Shionogi-ViiV Healthcare joint venture. In 2015, the credit also included the unwind of deferred tax liabilities on the disposal of the Group’s Oncology business to Novartis. The following table reconciles the tax charge calculated at the UK statutory rate on the Group profit before tax with the actual tax charge for the year. Reconciliation of taxation on Group profits 2017 2017 2016 2016 2015 2015 Profit before tax 3,525 1,939 10,526 UK statutory rate of taxation 679 19.25 388 20.0 2,131 20.25 Differences in overseas taxation rates 635 18.0 593 30.6 1,035 9.8 Benefit of intellectual property incentives (458 ) (13.0 ) (321 ) (16.5 ) (286 ) (2.7 ) R&D credits (75 ) (2.1 ) (93 ) (4.8 ) (38 ) (0.4 ) Remeasurement of non-taxable 227 6.4 340 17.5 17 0.2 Losses not recognised/(previously unrecognised losses) 28 0.8 (15 ) (0.8 ) 31 0.3 Permanent differences on disposals and acquisitions 4 0.1 (21 ) (1.1 ) (248 ) (2.4 ) Other permanent differences 196 5.6 97 5.0 58 0.6 Reassessment of prior year estimates in respect of current and deferred taxes (475 ) (13.5 ) (116 ) (6.0 ) (578 ) (5.5 ) US and Swiss tax reform 595 16.9 Tax on unremitted earnings — — 25 1.3 32 0.3 Tax charge/tax rate 1,356 38.5 877 45.2 2,154 20.5 GSK has a substantial business presence in many countries around the globe. The impact of differences in overseas taxation rates arose from profits being earned in countries with tax rates higher than the UK statutory rate, the most significant of which in 2017 were the US, Belgium, and India. The adverse impact was partly offset by the increased benefit of intellectual property incentives such as the UK Patent Box and Belgian Patent Income Deduction regimes. Such regimes provide a reduced rate of corporate income tax on profits earned from qualifying patents. The Group’s 2017 tax rate of 38.5% has been influenced by the impact of US and Swiss tax reforms, together with transaction-related charges arising on the Group’s put option liabilities in relation to ViiV Healthcare and the Consumer Healthcare Joint Venture and the reassessment of estimates of uncertain tax positions following the settlement of a number of open issues with tax authorities in various jurisdictions. Included within Other permanent differences is a £34 million charge that arises following the enactment of Belgium tax reform during 2017. Future tax charges, and therefore the Group’s effective tax rate, may be affected by factors such as acquisitions, disposals, restructurings, the location of research and development activity, tax regime reforms and resolution of open matters as we continue to bring our tax affairs up to date around the world. 2017 2016 2015 Tax on items charged to equity and statement of comprehensive income £m £m £m Current taxation Share-based payments — 7 22 Defined benefit plans 26 32 30 26 39 52 Deferred taxation Share-based payments (4 ) — (12 ) Defined benefit plans (247 ) 94 (110 ) Exchange movements — — — Fair value movements on cash flow hedges — 2 — Fair value movements on available-for-sale 29 51 (55 ) (222 ) 147 (177 ) Total (charge)/credit to equity and statement of comprehensive income (196 ) 186 (125 ) All of the above items have been charged to the statement of comprehensive income except for tax on share based payments. Following enactment of US and Belgian tax reform, the Group has recognised deferred tax charges of £27 million and £25 million respectively to equity and the statement of comprehensive income. Both amounts are included within the £222 million net deferred tax charge presented above. International tax reform The Group’s tax charge has been influenced by the impact of international tax reform enacted during the year. The US Tax Cuts and Jobs Act (‘the Act’) is expected to have a positive impact on the future after tax earnings of GSK’s US businesses. However, enactment of the new law in 2017 has resulted in a number of non-recurring non-recurring The charges associated with US tax reform are based on the information currently available. As further guidance from the US Treasury on implementation of the Act becomes available, particularly with regard to the repatriation tax provisions, the assumptions underlying these estimates could change. This could result in adjustments to the charges taken that could have a material impact on the results of the Group. The impact of tax reform on profits attributable to shareholders in 2017 is set out below. Swiss tax US tax reform reform £m £m Other operating expenses — (666 ) Current tax — (273 ) Deferred tax 483 (805 ) Impact on profit after taxation for the year 483 (1,744 ) Profit attributable to non-controlling 176 (114 ) Profit attributable to shareholders 307 (1,630 ) The valuations of the HIV and Consumer Healthcare businesses have increased due to lower US tax rates. This has resulted in an increase in the related liabilities for contingent consideration and the put options and hence an additional operating cost of £666 million. The current tax charge in respect of US tax reform relates primarily to the introduction of a repatriation tax on the accumulated reserves of non-US The tax charge associated with US tax reform was partly offset by an allocation to non-controlling non-controlling Current tax Deferred tax Total £m £m £m Revaluation of assets and liabilities 75 (805 ) (730 ) Repatriation tax (348 ) — (348 ) (273 ) (805 ) (1,078 ) The Group also incurred a charge of £34 million following the enactment of Belgian tax reform during 2017, predominantly relating to the revaluation of existing deferred tax assets. Continued focus on tax reform is expected in 2018 and future years driven by the OECD’s Base Erosion and Profit Shifting (“BEPS”) project and European Commission initiatives including fiscal state aid investigations. Together with domestic initiatives around the world these may result in significant changes to established tax principles and an increase in tax authority disputes. In turn, this could adversely affect GSK’s effective tax rate or could result in higher cash tax liabilities. Issues relating to taxation The integrated nature of the Group’s worldwide operations involves significant investment in research and strategic manufacture at a limited number of locations, with consequential cross-border supply routes into numerous end-markets. The calculation of the Group’s total tax charge therefore necessarily involves a degree of estimation and judgment in respect of certain items whose tax treatment cannot be finally determined until resolution has been reached with the relevant tax authority or, as appropriate, through a formal legal process. At 31 December 2017 the Group had recognised provisions of £1,175 million in respect of such uncertain tax positions (2016 – £1,892 million). The decrease in recognised provisions during 2017 was driven by the reassessment of estimates and the utilisation of provisions for uncertain tax positions following the settlement of a number of open issues with tax authorities in various jurisdictions. The transfer of accrued interest payable on tax balances to ‘Other payables’ and the foreign exchange impact of revaluing overseas exposures also contributed to the reduction in recognised provisions. Whilst the ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of agreements with the relevant tax authorities, or litigation where appropriate, the Group continues to believe that it has made appropriate provision for periods which are open and not yet agreed by the tax authorities. We do not currently anticipate any material changes to the amounts provided for transfer pricing or tax contingencies during the next 12 months. A provision for deferred tax liabilities of £209 million (2016 – £205 million) has been made in respect of withholding taxation that would arise on the distribution of profits by certain overseas subsidiaries. Whilst the aggregate amount of unremitted profits at the balance sheet date was approximately £17 billion (2016 – £18 billion), the majority of these unremitted profits would not be subject to tax (including withholding tax) on repatriation, as UK legislation relating to company distributions provides for exemption from tax for most overseas profits, subject to certain exceptions. In prior years, a temporary difference arose on the accumulated reserves of non-US one-off Movement in deferred tax assets and liabilities Pensions & Share Other Accelerated other post option net capital Intangible Contingent Intra-Group employment Tax and award temporary allowances assets consideration profit benefits losses schemes differences Total £m £m £m £m £m £m £m £m £m At 1 January 2017 (377 ) (2,324 ) 1,138 1,054 1,262 227 110 1,350 2,440 Exchange adjustments (7 ) 75 — (58 ) (48 ) (5 ) (4 ) (18 ) (65 ) Credit/(charge) to income statement 62 330 (52 ) 256 3 59 (1 ) (88 ) 569 Credit/(charge) to income statement associated with US tax reform 5 116 (218 ) (235 ) (210 ) (20 ) (27 ) (216 ) (805 ) Credit to income statement associated with Swiss tax reform — 483 — — — — — — 483 (Charge)/credit to statement of comprehensive income and equity — — — — (247 ) — (4 ) 29 (222 ) At 31 December 2017 (317 ) (1,320 ) 868 1,017 760 261 74 1,057 2,400 The net deferred tax credit of £247 million to the income statement included a £483 million credit associated with Swiss tax reform and a £569 million credit in relation to the origination and reversal of temporary differences. These credits were partly offset by a £805 million charge in relation to US tax reform. The net credit to the income statement of £247 million included a £16 million charge related to R&D incentives recognised within Operating profit (and not the taxation charge) in the income statement. Deferred tax liabilities provided in relation to intangible assets predominately relate to temporary differences arising on assets and liabilities acquired as part of historic business combinations. The Group continues to recognise deferred tax assets on future obligations in respect of contingent consideration amounts payable to minority shareholders. These payments are tax deductible at the point in time at which payment is made. A deferred tax asset is recognised on intra-Group profits arising on inter-company inventory which are eliminated within the consolidated financial statements. As intra-Group profits are not eliminated from the individual entities’ tax returns a temporary difference arises that will reverse at the point in time inventory is sold externally. The deferred tax asset recognised on tax losses of £261 million related to trading losses. In 2016, £173 million related to trading losses and £54 million related to capital losses. Other net temporary differences included accrued expenses for which a tax deduction is only available on a paid basis, such as rebates. Deferred tax assets and liabilities are recognised on the balance sheet as follows: 2017 2016 £m £m Deferred tax assets 3,796 4,374 Deferred tax liabilities (1,396 ) (1,934 ) 2,400 2,440 Deferred tax assets are recognised on US foreign tax credits only where it is possible that future taxable profits will be available. The gross amount of foreign tax credits on which deferred tax has not been recognised was £721 million at 31 December 2017. Deferred tax assets are recognised where it is probable that future taxable profit will be available to utilise losses. Unrecognised tax losses are as follows: 2017 2016 Unrecognised Unrecognised deferred tax deferred tax Tax losses asset Tax losses asset Unrecognised tax losses £m £m £m £m Trading losses expiring: Within 10 years 802 187 786 255 More than 10 years 872 99 842 131 Available indefinitely 86 14 95 15 At 31 December 1,760 300 1,723 401 Capital losses 1,924 372 2,320 396 At 31 December 1,924 372 2,320 396 |
Earnings per share
Earnings per share | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Earnings per share | 15. Earnings per share 2017 2016 2015 pence pence pence Basic earnings per share 31.4 18.8 174.3 Diluted earnings per share 31.0 18.6 172.3 Basic earnings per share has been calculated by dividing the profit attributable to shareholders by the weighted average number of shares in issue during the period after deducting shares held by the ESOP Trusts and Treasury shares. The trustees have waived their rights to dividends on the shares held by the ESOP Trusts. Diluted earnings per share has been calculated after adjusting the weighted average number of shares used in the basic calculation to assume the conversion of all potentially dilutive shares. A potentially dilutive share forms part of the employee share schemes where its exercise price is below the average market price of GSK shares during the period and any performance conditions attaching to the scheme have been met at the balance sheet date. The numbers of shares used in calculating basic and diluted earnings per share are reconciled below. 2017 2016 2015 Weighted average number of shares in issue millions millions millions Basic 4,886 4,860 4,831 Dilution for share options and awards 55 49 57 Diluted 4,941 4,909 4,888 |
Dividends
Dividends | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Dividends | 16. Dividends 2017 2016 2015 Dividend Total Dividend Total Dividend Total per share dividend per share dividend per share dividend Paid/payable (pence) £m Paid (pence) £m Paid (pence) £m First interim 13 July 2017 19 928 14 July 2016 19 923 9 July 2015 19 920 Second interim 12 October 2017 19 929 13 October 2016 19 925 1 October 2015 19 919 Third interim 11 January 2018 19 929 12 January 2017 19 925 14 January 2016 19 919 Fourth interim 12 April 2018 23 1,125 13 April 2017 23 1,124 14 April 2016 23 1,114 Total 80 3,911 80 3,897 80 3,872 Special dividend 14 April 2016 20 969 Under IFRS interim dividends are only recognised in the financial statements when paid and not when declared. GSK normally pays a dividend two quarters after the quarter to which it relates and one quarter after it is declared. The 2017 financial statements recognise those dividends paid in 2017, namely the third and fourth interim dividends for 2016, and the first and second interim dividends for 2017. The amounts recognised in each year were as follows: 2017 2016 2015 £m £m £m Dividends to shareholders 3,906 4,850 3,874 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Property, plant and equipment | 17. Property, plant and equipment Plant, Land and equipment Assets in buildings and vehicles construction Total £m £m £m £m Cost at 1 January 2016 7,305 10,775 2,670 20,750 Exchange adjustments 956 1,100 271 2,327 Other additions 117 384 1,043 1,544 Capitalised borrowing costs — — 30 30 Disposals and write-offs (349 ) (1,422 ) (53 ) (1,824 ) Reclassifications 110 512 (761 ) (139 ) Transfer to assets held for sale (378 ) (114 ) (32 ) (524 ) Cost at 31 December 2016 7,761 11,235 3,168 22,164 Exchange adjustments (127 ) (62 ) (45 ) (234 ) Other additions 69 296 1,219 1,584 Capitalised borrowing costs — — 30 30 Disposals and write-offs (376 ) (685 ) (31 ) (1,092 ) Reclassifications 602 1,186 (1,826 ) (38 ) Transfer to assets held for sale (462 ) (219 ) (14 ) (695 ) Cost at 31 December 2017 7,467 11,751 2,501 21,719 Depreciation at 1 January 2016 (2,914 ) (7,415 ) — (10,329 ) Exchange adjustments (377 ) (717 ) — (1,094 ) Charge for the year (338 ) (640 ) — (978 ) Disposals and write-offs 205 1,270 — 1,475 Transfer to assets held for sale 165 92 — 257 Depreciation at 31 December 2016 (3,259 ) (7,410 ) — (10,669 ) Exchange adjustments 50 110 — 160 Charge for the year (299 ) (689 ) — (988 ) Disposals and write-offs 158 539 — 697 Transfer to assets held for sale 314 190 — 504 Depreciation at 31 December 2017 (3,036 ) (7,260 ) — (10,296 ) Impairment at 1 January 2016 (274 ) (373 ) (106 ) (753 ) Exchange adjustments (45 ) (37 ) (11 ) (93 ) Disposals and write-offs 91 135 35 261 Impairment losses (135 ) (117 ) (6 ) (258 ) Reversal of impairments 38 38 2 78 Transfer to assets held for sale 46 10 22 78 Impairment at 31 December 2016 (279 ) (344 ) (64 ) (687 ) Exchange adjustments 8 2 (2 ) 8 Disposals and write-offs 210 104 28 342 Impairment losses (194 ) (138 ) (17 ) (349 ) Reversal of impairments 7 9 1 17 Transfer to assets held for sale 87 8 11 106 Impairment at 31 December 2017 (161 ) (359 ) (43 ) (563 ) Total depreciation and impairment at 31 December 2016 (3,538 ) (7,754 ) (64 ) (11,356 ) Total depreciation and impairment at 31 December 2017 (3,197 ) (7,619 ) (43 ) (10,859 ) Net book value at 1 January 2016 4,117 2,987 2,564 9,668 Net book value at 31 December 2016 4,223 3,481 3,104 10,808 Net book value at 31 December 2017 4,270 4,132 2,458 10,860 The weighted average interest rate for capitalised borrowing costs in the year was 4% (2016 – 3.8%). Disposals and write-offs in the year include a number of assets with nil net book value that are no longer in use in the business. The net book value at 31 December 2017 of the Group’s land and buildings comprised freehold properties £3,896 million (2016 – £3,887 million), properties with leases of 50 years or more £338 million (2016 – £294 million) and properties with leases of less than 50 years £36 million (2016 – £42 million). Included in land and buildings at 31 December 2017 were leased assets with a cost of £630 million (2016 – £590 million), accumulated depreciation of £255 million (2016 – £253 million), impairment of £nil (2016 – £1 million) and a net book value of £375 million (2016 – £336 million). Included in plant, equipment and vehicles at 31 December 2017 were leased assets with a cost of £18 million (2016 – £44 million), accumulated depreciation of £4 million (2016 – £15 million), impairment of £1 million (2016 – £nil) and a net book value of £13 million (2016 – £29 million). Some lease agreements include renewal or purchase options or escalation clauses. The impairment losses principally arose from decisions to rationalise facilities and are calculated based on either fair value less costs of disposal or value in use. The fair value less costs of disposal valuation methodology uses significant inputs which are not based on observable market data, and therefore this valuation technique is classified as level 3 of the fair value hierarchy. These calculations determine the net present value of the projected risk-adjusted, post-tax post-tax pre-tax pre-tax pre-tax pre-tax Reversals of impairment arose from subsequent reviews of the impaired assets where the conditions which gave rise to the original impairments were deemed no longer to apply. All of the reversals have been credited to cost of sales. The carrying value at 31 December 2017 of assets for which impairments have been charged or reversed in the year was £33 million (2016 – £171 million). During 2017, £38 million (2016 – £139 million) of computer software was reclassified from assets in construction to intangible assets on becoming ready for use. |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Goodwill | 18. Goodwill 2017 2016 £m £m Cost at 1 January 5,965 5,162 Exchange adjustments (228 ) 814 Additions through business combinations (Note 38) — 7 Transfer to assets held for sale (3 ) (18 ) Cost at 31 December 5,734 5,965 Net book value at 1 January 5,965 5,162 Net book value at 31 December 5,734 5,965 Goodwill is allocated to the Group’s segments as follows: 2017 2016 £m £m Pharmaceuticals 3,172 3,288 Vaccines 1,302 1,353 Consumer Healthcare 1,260 1,324 Net book value at 31 December 5,734 5,965 The recoverable amounts of the cash generating units are assessed using a fair value less costs of disposal model. Fair value less costs of disposal is calculated using a discounted cash flow approach, with a post-tax post-tax The discount rate used is based on the Group WACC of 7%, as most cash generating units have integrated operations across large parts of the Group. The discount rate is adjusted where appropriate for specific country or currency risks. The valuation methodology uses significant inputs which are not based on observable market data, therefore this valuation technique is classified as level 3 in the fair value hierarchy. Details relating to the discounted cash flow models used in the impairment tests of the Pharmaceuticals, Vaccines and Consumer Healthcare cash generating units are as follows: Valuation basis Fair value less costs of disposal Key assumptions Sales growth rates Profit margins Terminal growth rate Discount rate Taxation rate Determination of assumptions Growth rates are internal forecasts based on both internal and external market information. Margins reflect past experience, adjusted for expected changes. Terminal growth rates based on management’s estimate of future long-term average growth rates. Discount rates based on Group WACC, adjusted where appropriate. Taxation rates based on appropriate rates for each region. Period of specific projected cash flows Five years Terminal growth rate and discount rate Terminal growth rate Discount rate Pharmaceuticals 1% p.a. 7% Vaccines 2% p.a. 7% Consumer Healthcare 2% p.a. 7% The terminal growth rates do not exceed the long-term projected growth rates for the relevant markets, reflect the impact of future generic competition and take account of new product launches. In each case the valuations indicated sufficient headroom such that a reasonably possible change to key assumptions is unlikely to result in an impairment of the related goodwill. Goodwill is monitored at the segmental level. The Pharmaceuticals cash generating unit comprises a collection of smaller cash generating units including assets with indefinite lives with a carrying value of £228 million (2016 – £211 million). The Consumer Healthcare cash generating unit also comprises a collection of smaller cash generating units including brands with indefinite lives with a carrying value of £8.51 billion (2016 – £9.03 billion). Details of indefinite life brands are given in Note 19, ‘Other intangible assets’. |
Other intangible assets
Other intangible assets | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Other intangible assets | 19. Other intangible assets Computer Licences, Amortised Indefinite life software patents, etc. brands brands Total £m £m £m £m £m Cost at 1 January 2016 2,028 13,394 387 8,074 23,883 Exchange adjustments 137 1,139 20 1,320 2,616 Capitalised development costs — 219 21 — 240 Capitalised borrowing costs 4 — — — 4 Additions through business combinations — 102 — — 102 Other additions 238 349 — — 587 Disposals and asset write-offs (389 ) (21 ) (1 ) (7 ) (418 ) Transfer to assets held for sale (1 ) (39 ) — (12 ) (52 ) Reclassifications 139 — — — 139 Cost at 31 December 2016 2,156 15,143 427 9,375 27,101 Exchange adjustments (37 ) (215 ) (4 ) (272 ) (528 ) Capitalised development costs — 251 — — 251 Capitalised borrowing costs 2 3 — — 5 Other additions 233 221 — — 454 Disposals and asset write-offs (217 ) (38 ) — — (255 ) Transfer to assets held for sale (1 ) (90 ) — (44 ) (135 ) Reclassifications 38 — 66 (66 ) 38 Cost at 31 December 2017 2,174 15,275 489 8,993 26,931 Amortisation at 1 January 2016 (1,294 ) (4,030 ) (133 ) — (5,457 ) Exchange adjustments (92 ) (410 ) (5 ) — (507 ) Charge for the year (152 ) (553 ) (91 ) — (796 ) Disposals and asset write-offs 353 — 5 — 358 Transfer to assets held for sale 1 10 — — 11 Amortisation at 31 December 2016 (1,184 ) (4,983 ) (224 ) — (6,391 ) Exchange adjustments 25 141 — — 166 Charge for the year (163 ) (761 ) (10 ) — (934 ) Disposals and asset write-offs 210 25 — — 235 Transfer to assets held for sale 1 25 — — 26 Amortisation at 31 December 2017 (1,111 ) (5,553 ) (234 ) — (6,898 ) Impairment at 1 January 2016 (39 ) (1,439 ) (154 ) (122 ) (1,754 ) Exchange adjustments (3 ) (266 ) — (3 ) (272 ) Impairment losses (2 ) (15 ) — (5 ) (22 ) Disposals and asset write-offs 35 40 11 — 86 Transfer to assets held for sale — 28 — — 28 Impairment at 31 December 2016 (9 ) (1,652 ) (143 ) (130 ) (1,934 ) Exchange adjustments — 110 — 3 113 Impairment losses (2 ) (546 ) — (132 ) (680 ) Disposals and asset write-offs 2 5 — — 7 Transfer to assets held for sale — 19 — 4 23 Impairment at 31 December 2017 (9 ) (2,064 ) (143 ) (255 ) (2,471 ) Total amortisation and impairment at 31 December 2016 (1,193 ) (6,635 ) (367 ) (130 ) (8,325 ) Total amortisation and impairment at 31 December 2017 (1,120 ) (7,617 ) (377 ) (255 ) (9,369 ) Net book value at 1 January 2016 695 7,925 100 7,952 16,672 Net book value at 31 December 2016 963 8,508 60 9,245 18,776 Net book value at 31 December 2017 1,054 7,658 112 8,738 17,562 The weighted average interest rate for capitalised borrowing costs in the year was 4% (2016 – 3.8%). The net book value of computer software included £669 million (2016 – £620 million) of internally generated costs. The charge for impairments in the year included £229 million related to the progressive withdrawal of the pharmaceutical product, Tanzeum, which was fully impaired. The carrying value at 31 December 2017 of intangible assets, for which impairments have been charged or reversed in the year, following those impairments or reversals, was £300 million (2016 – £116 million). The patent expiry dates of the Group’s most significant assets, where relevant, are set out on pages 254 and 255. Amortisation and impairment losses, net of reversals, have been charged in the income statement as follows: Amortisation Net impairment losses 2017 2016 2017 2016 £m £m £m £m Cost of sales 578 582 400 7 Selling, general and administration 116 95 2 2 Research and development 240 119 278 13 934 796 680 22 Licences, patents, etc. includes a large number of acquired licences, patents, know-how 2017 2016 £m £m Meningitis portfolio 2,450 2,511 dolutegravir 1,389 1,487 Benlysta 965 1,019 Fluarix/FluLaval 321 380 HIV assets acquired from BMS 277 277 Selzentry 162 188 Okairos technology platform 202 173 Others 1,892 2,473 7,658 8,508 The Meningitis portfolio includes Menveo, Bexsero and Men ABCWY. Indefinite life brands comprise a portfolio of Consumer Healthcare products primarily acquired with the acquisitions of Sterling Winthrop, Inc. in 1994, Block Drug Company, Inc. in 2001, CNS, Inc. in 2006 and the Novartis Consumer Healthcare business in 2015, together with a number of pharmaceutical brands from the acquisition of Stiefel Laboratories, Inc. in 2009. The book values of the major brands are as follows: 2017 2016 £m £m Voltaren 2,716 2,847 Otrivin 1,380 1,447 Fenistil 648 680 Theraflu 441 462 Panadol 386 354 Sensodyne 265 243 Lamisil 289 304 Breathe Right 236 199 Stiefel trade name 228 211 Excedrin 185 194 Physiogel 166 166 Polident 112 103 Others 1,686 2,035 8,738 9,245 Each of these brands is considered to have an indefinite life, given the strength and durability of the brand and the level of marketing support. The brands are in relatively similar stable and profitable market sectors, with similar risk profiles, and their size, diversification and market shares mean that the risk of market-related factors causing a reduction in the lives of the brands is considered to be relatively low. The Group is not aware of any material legal, regulatory, contractual, competitive, economic or other factors which could limit their useful lives. Accordingly, they are not amortised. Each brand is tested annually for impairment and other amortised intangible assets are tested when indicators of impairment arise. This testing applies a fair value less costs of disposal methodology, generally using post-tax post-tax |
Investments in associates and j
Investments in associates and joint ventures | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Investments in associates and joint ventures | 20. Investments in associates and joint ventures Joint 2017 Joint 2016 ventures Associates Total ventures Associates Total £m £m £m £m £m £m At 1 January 19 244 263 20 187 207 Exchange adjustments (2 ) (10 ) (12 ) 4 41 45 Additions — 15 15 3 8 11 Disposals — (92 ) (92 ) — — — Distributions received (1 ) (1 ) (2 ) (2 ) (1 ) (3 ) Other movements — (2 ) (2 ) (2 ) — (2 ) (Loss)/profit after tax recognised in the consolidated income statement (3 ) 16 13 (4 ) 9 5 At 31 December 13 170 183 19 244 263 The Group held one significant associate at 31 December 2017, Innoviva, Inc. At 31 December 2017, the Group owned 32 million shares or 31.4% of Innoviva, which is a biopharmaceutical company listed on NASDAQ. Innoviva partnered with GSK in the development of the long acting beta agonist vilanterol and currently receives royalty income from sales of products that contain this component, namely Relvar/Breo Ellipta, Anoro Ellipta and Trelegy Ellipta In 2017, the Group divested its shareholdings in two associates, see Note 38, ‘Acquisitions and disposals’. Summarised balance sheet information, based on results information, in respect of Innoviva is set out below: At At 2017 2016 £m £m Non-current 124 146 Current assets 148 160 Current liabilities (26 ) (16 ) Non-current (426 ) (575 ) Net liabilities (180 ) (285 ) 2017 2016 £m £m Interest in associated undertaking (57 ) (84 ) Goodwill 86 84 Fair value and other adjustments 118 138 Carrying value at 31 December 147 138 |
Other investments
Other investments | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Other investments | 21. Other investments 2017 2016 £m £m At 1 January 985 1,255 Exchange adjustments (64 ) 211 Additions 80 96 Net fair value movements 11 130 Impairment losses (30 ) (24 ) Disposals (64 ) (683 ) At 31 December 918 985 Other investments comprise non-current available-for-sale On disposal of investments, fair value movements are reclassified from equity to the income statement based on average cost for shares acquired at different times. The impairment losses recorded above have been recognised in the income statement for the year within Other operating income, together with amounts reclassified from the fair value reserve on recognition of the impairments. These impairments initially result from prolonged or significant declines in the fair value of the equity investments below acquisition cost, subsequent to which any further declines in fair value are immediately taken to the income statement. The carrying value at 31 December of Other investments which have been impaired is as follows: 2017 2016 £m £m Original cost 475 515 Cumulative impairments recognised in the income statement (283 ) (314 ) Subsequent fair value increases 210 282 Carrying value at 31 December 402 483 |
Other non-current assets
Other non-current assets | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Other non-current assets | 22. Other non-current assets 2017 2016 £m £m Amounts receivable under insurance contracts 648 602 Pension schemes in surplus 538 313 Other receivables 227 284 1,413 1,199 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Inventories | 23. Inventories 2017 2016 £m £m Raw materials and consumables 1,193 1,068 Work in progress 2,381 2,299 Finished goods 1,983 1,735 5,557 5,102 |
Trade and other receivables
Trade and other receivables | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Trade and other receivables | 24. Trade and other receivables 2017 2016 £m £m Trade receivables, net of provision for bad and doubtful debts 4,672 4,615 Accrued income 21 64 Other prepayments 308 335 Interest receivable 10 11 Employee loans and advances 19 17 Other receivables 970 984 6,000 6,026 Trade receivables included £11 million (2016 – £9 million) due from associates and joint ventures. Other receivables included £7 million (2016 – £7 million) due from associates and joint ventures. 2017 2016 Bad and doubtful debt provision £m £m At 1 January 207 167 Exchange adjustments (4 ) 23 Charge for the year 31 77 Subsequent recoveries of amounts provided for (79 ) (59 ) Utilised (15 ) (1 ) At 31 December 140 207 |
Cash and cash equivalents
Cash and cash equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Cash and cash equivalents | 25. Cash and cash equivalents 2017 2016 £m £m Cash at bank and in hand 826 1,462 Short-term deposits 3,007 3,435 3,833 4,897 |
Assets held for sale
Assets held for sale | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Assets held for sale | 26. Assets held for sale 2017 2016 £m £m Property, plant and equipment 57 184 Goodwill — 13 Other intangibles 49 12 Inventory 7 7 Other — (1 ) 113 215 Included within Assets held for sale is £31 million of intangible impairments, £10 million PP&E impairments, £21 million intangible impairment reversals and £15 million PP&E impairment reversals. Non-current Included within Assets held for sale are assets which were written down to fair value less costs to sell of £63 million (2016 – £79 million). The valuation methodology uses significant inputs which are not based on observable market data, therefore, this valuation is classified as level 3 in the fair value hierarchy. |
Trade and other payables
Trade and other payables | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Trade and other payables | 27. Trade and other payables 2017 2016 £m £m Trade payables 3,528 3,596 Wages and salaries 1,228 1,236 Social security 166 120 Consumer Healthcare put option 8,606 — ViiV Healthcare put option 1,304 1,319 Other payables 363 447 Deferred income 240 158 Customer return and rebate accruals 3,463 2,778 Other accruals 2,072 2,310 20,970 11,964 Trade and other payables included £53 million (2016 – £36 million) due to associates and joint ventures. Customer return and rebate accruals are provided for by the Group at the point of sale in respect of the estimated rebates, discounts or allowances payable to customers, and included £2,837 million (2016 – £2,218 million) in respect of US Pharmaceuticals and Vaccines, as more fully described in the Group financial review on page 76. Accruals are made at the time of sale but the actual amounts paid are based on claims made some time after the initial recognition of the sale. As the amounts are estimated, they may not fully reflect the final outcome and are subject to change dependent upon, amongst other things, the types of buying group and product sales mix. The level of accrual is reviewed and adjusted quarterly in light of historical experience of actual rebates, discounts or allowances given and returns made and any changes in arrangements. Future events could cause the assumptions on which the accruals are based to change, which could affect the future results of the Group. The Consumer Healthcare put option liability relates to the ability of Novartis to put its shares in the Consumer Healthcare Joint Venture to GSK at certain points in the future. As this option became exercisable from 2 March 2018, with payment likely to be due several months after exercise, it has been classified within current liabilities. The liability is recorded at the present value of the estimated redemption value, applying a discount rate of 7%, calculated by applying an average of relevant public company multiples approach with no premium or discount, based on the forecast profits and earnings of the Consumer Healthcare Joint Venture, which forms part of GSK’s Consumer Healthcare segment. The remeasurement charge in the year was £1,186 million, including the impact of US tax reform (2016 – £1,133 million), see Note 7, ‘Other operating income/(expense)’. The table below shows on an indicative basis the income statement and balance sheet sensitivity to reasonably possible changes in key assumptions. 2017 Increase/(decrease) in financial liability and loss/(gain) in Income statement £m 10% increase in sales forecasts or sales multiple applied 850 10% decrease in sales forecasts or sales multiple applied (850 ) 10 cent appreciation of US Dollar 88 10 cent depreciation of US Dollar (76 ) 10 cent appreciation of Euro 303 10 cent depreciation of Euro (254 ) Pfizer’s put option over its shareholding in ViiV Healthcare was recognised during 2016 and is currently exercisable. The table below shows on an indicative basis the income statement and balance sheet sensitivity of the Pfizer put option to reasonably possible changes in key assumptions. 2017 Increase/(decrease) in financial liability and loss/(gain) in Income statement £m 10% increase in sales forecasts 150 10% decrease in sales forecasts (149 ) 10 cent appreciation of US Dollar 76 10 cent depreciation of US Dollar (66 ) 10 cent appreciation of Euro 44 10 cent depreciation of Euro (37 ) An explanation of the accounting for ViiV Healthcare is set out on page 59. |
Pensions and other post-employm
Pensions and other post-employment benefits | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Pensions and other post-employment benefits | 28. Pensions and other post-employment benefits 2017 2016 2015 Pension and other post-employment costs £m £m £m UK pension schemes 198 205 177 US pension schemes 113 106 96 Other overseas pension schemes 218 140 135 Unfunded post-retirement healthcare schemes 87 90 59 616 541 467 Analysed as: Funded defined benefit/hybrid pension schemes 335 304 291 Unfunded defined benefit pension schemes 55 43 36 Unfunded post-retirement healthcare schemes 87 90 59 Defined benefit schemes 477 437 386 Defined contribution pension schemes 139 104 81 616 541 467 The costs of the defined benefit pension and post-retirement healthcare schemes are charged in the income statement as follows: 2017 2016 2015 £m £m £m Cost of sales 162 135 127 Selling, general and administration 238 221 194 Research and development 77 81 65 477 437 386 GSK entities operate pension arrangements which cover the Group’s material obligations to provide pensions to retired employees. These arrangements have been developed in accordance with local practices in the countries concerned. Pension benefits can be provided by state schemes; by defined contribution schemes, whereby retirement benefits are determined by the value of funds arising from contributions paid in respect of each employee; or by defined benefit schemes, whereby retirement benefits are based on employee pensionable remuneration and length of service. Pension costs of defined benefit schemes for accounting purposes have been calculated using the projected unit method. In certain countries pension benefits are provided on an unfunded basis, some administered by trustee companies. Formal, independent, actuarial valuations of the Group’s main plans are undertaken regularly, normally at least every three years. Actuarial movements in the year are recognised through the statement of comprehensive income. Discount rates are derived from AA rated corporate bond yields except in countries where there is no deep market in corporate bonds where government bond yields are used. Discount rates are selected to reflect the term of the expected benefit payments. Projected inflation rate and pension increases are long-term predictions based on the yield gap between long-term index-linked and fixed interest Gilts. In the UK, mortality rates are determined by adjusting the SAPS S2 standard mortality tables to reflect recent scheme experience. These rates are then projected to reflect improvements in life expectancy in line with the CMI 2016 projections with a long-term rate of improvement of 1.25% per year for both males and females. In the US, mortality rates are calculated using the RP2014 white collar table adjusted to reflect recent experience. These rates are projected using MP-2017 The average life expectancy assumed now for an individual at the age of 60 and projected to apply in 2037 for an individual then at the age of 60 is as follows: UK US Male Female Male Female Current 27.5 29.5 26.9 28.6 Projected for 2037 29.1 31.1 28.6 30.3 The assets of funded schemes are generally held in separately administered trusts, either as specific assets or as a proportion of a general fund, or are insurance contracts. Assets are invested in different classes in order to maintain a balance between risk and return. Investments are diversified to limit the financial effect of the failure of any individual investment. The Group reviewed the investment strategy of the UK plans in 2011 and the asset allocation for the UK plans has been adjusted to approximately 55% return seeking assets and 45% liability matching assets. In 2013, the target asset allocation of the US plans was also updated to 55% return seeking assets and 45% liability matching assets. The Pension Plans are exposed to risk that arises because the estimated market value of the Plans’ assets might decline, the investment returns might reduce, or the estimated value of the Plans’ liabilities might increase. In line with the agreed mix of return seeking assets to generate future returns and liability matching assets to better match future pension obligations, the Group has defined an overall long-term investment strategy for the Plans, with investments across a broad range of assets. The main market risks within the asset and hedging portfolio are against credit risk, interest rates, long-term inflation, equities, property, and bank counterparty risk. The Plan liabilities are a series of future cash flows with relatively long duration. On an IAS 19R basis, these cash flows are sensitive to changes in the expected long-term inflation rate and the discount rate (AA corporate bond yield curve) where an increase in long-term inflation corresponds with an increase in the liabilities, and an increase in the discount rate corresponds with a decrease in the liabilities. In the UK the defined benefit pension schemes operated for the benefit of former Glaxo Wellcome employees and former SmithKline Beecham employees remain separate. These schemes were closed to new entrants in 2001 and subsequent UK employees are entitled to join a defined contribution scheme. In the US the former Glaxo Wellcome and SmithKline Beecham defined benefit schemes were merged during 2001. In addition, the Group operates a number of post-retirement healthcare schemes, the principal one of which is in the US. The Group has applied the following financial assumptions in assessing the defined benefit liabilities: UK US Rest of World 2017 2016 2015 2017 2016 2015 2017 2016 2015 Rate of increase of future earnings 2.00 2.00 2.00 4.00 4.00 4.00 2.80 2.70 2.70 Discount rate 2.50 2.70 3.80 3.60 3.90 4.20 1.60 1.60 2.20 Expected pension increases 3.20 3.20 3.10 n/a n/a n/a 2.20 2.10 2.00 Cash balance credit/conversion rate n/a n/a n/a 2.90 3.20 3.20 0.30 0.30 0.60 Inflation rate 3.20 3.20 3.10 2.25 2.25 2.25 1.70 1.50 1.40 The amounts recorded in the income statement and statement of comprehensive income for the three years ended 31 December 2017 in relation to the defined benefit pension and post-retirement healthcare schemes were as follows: Pensions Post-retirement 2017 UK US Rest of World Group Group £m Amounts charged to operating profit Current service cost 79 70 131 280 30 Past service cost 37 — — 37 (2 ) Net interest cost 7 31 16 54 59 Expenses 7 12 — 19 — 130 113 147 390 87 Remeasurement gains/(losses) recorded in the statement of comprehensive income 259 240 (14 ) 485 64 Pensions Post-retirement 2016 UK US Rest of World Group Group Amounts charged to operating profit Current service cost 70 66 110 246 31 Past service cost 52 1 1 54 3 Net interest cost 9 27 20 56 56 Gains from settlements — — (28 ) (28 ) — Expenses 7 12 — 19 — 138 106 103 347 90 Remeasurement losses recorded in the statement of comprehensive income (165 ) (27 ) (224 ) (416 ) (59 ) Pensions Post-retirement 2015 UK US Rest of World Group Group £m Amounts charged to operating profit Current service cost 77 67 110 254 22 Past service cost/(credit) 25 2 (10 ) 17 (8 ) Net interest cost 14 22 13 49 52 Losses/(gains) from settlements — 1 (9 ) (8 ) (7 ) Expenses 7 4 4 15 — 123 96 108 327 59 Remeasurement gains/(losses) recorded in the statement of comprehensive income 82 (30 ) 147 199 62 The amounts included within past service costs include £37 million (2016 – £52 million; 2015 – £25 million) of augmentation costs of which £18 million is arising from major restructuring programmes (see Note 29, ‘Other provisions’). A summarised balance sheet presentation of the Group defined benefit pension schemes and other post-retirement benefits is set out in the table below: 2017 2016 2015 £m £m £m Recognised in Other non-current Pension schemes in surplus 538 313 258 Recognised in Pensions and other post-employment benefits: Pension schemes in deficit (2,043 ) (2,397 ) (1,842 ) Post-retirement benefits (1,496 ) (1,693 ) (1,387 ) (3,539 ) (4,090 ) (3,229 ) The fair values of the assets and liabilities of the UK and US defined benefit pension schemes, together with aggregated data for other defined benefit pension schemes in the Group are as follows: UK US Rest of World Group At 31 December 2017 £m £m £m £m Equities: – listed 4,902 1,448 544 6,894 – unlisted — — 13 13 Multi-asset funds 2,517 — — 2,517 Property: – unlisted 352 209 32 593 Corporate bonds: – listed 297 820 103 1,220 – unlisted 326 — 20 346 Government bonds: – listed 5,127 239 762 6,128 Insurance contracts 849 — 707 1,556 Other assets (1,216 ) 158 71 (987 ) Fair value of assets 13,154 2,874 2,252 18,280 Present value of scheme obligations (13,101 ) (3,445 ) (3,239 ) (19,785 ) Net surplus/(obligation) 53 (571 ) (987 ) (1,505 ) Included in Other non-current 470 — 68 538 Included in Pensions and other post-employment benefits (417 ) (571 ) (1,055 ) (2,043 ) 53 (571 ) (987 ) (1,505 ) Actual return on plan assets 893 394 82 1,369 The multi-asset funds comprise investments in pooled investment vehicles that are invested across a range of asset classes, increasing diversification within the growth portfolio. The index-linked gilts held as part of the UK repo programme are included in government bonds. The related loan is included within ‘Other assets’ at a value of £(773) million (2016 – £(1,698) million; 2015 – £(2,215) million). UK US Rest of World Group At 31 December 2016 £m £m £m £m Equities: – listed 5,357 1,358 486 7,201 – unlisted — — 14 14 Multi-asset funds 1,545 — — 1,545 Property: – unlisted 314 216 28 558 Corporate bonds: – listed 292 213 96 601 – unlisted 321 — 24 345 Government bonds: – listed 6,165 815 739 7,719 Insurance contracts 856 — 637 1,493 Other assets (2,267 ) 288 73 (1,906 ) Fair value of assets 12,583 2,890 2,097 17,570 Present value of scheme obligations (12,884 ) (3,752 ) (3,018 ) (19,654 ) Net obligation (301 ) (862 ) (921 ) (2,084 ) Included in Other non-current 276 — 37 313 Included in Pensions and other post-employment benefits (577 ) (862 ) (958 ) (2,397 ) (301 ) (862 ) (921 ) (2,084 ) Actual return on plan assets 2,473 153 99 2,725 At 31 December 2015 UK US Rest of World Group Equities: – listed 5,187 1,235 355 6,777 – unlisted — — 1 1 Multi-asset funds 481 — — 481 Property: – unlisted 302 175 8 485 Corporate bonds: – listed 251 727 76 1,054 – unlisted 232 — 2 234 Government bonds: – listed 5,687 184 664 6,535 Insurance contracts 755 — 439 1,194 Other assets (2,611 ) 180 205 (2,226 ) Fair value of assets 10,284 2,501 1,750 14,535 Present value of scheme obligations (10,601 ) (3,134 ) (2,384 ) (16,119 ) Net obligation (317 ) (633 ) (634 ) (1,584 ) Included in Other non-current 232 — 26 258 Included in Pensions and other post-employment benefits (549 ) (633 ) (660 ) (1,842 ) (317 ) (633 ) (634 ) (1,584 ) Actual return on plan assets (17 ) (30 ) 23 (24 ) Post-retirement Pensions benefits UK US Rest of World Group Group Movements in fair values of assets £m £m £m £m £m Assets at 1 January 2015 10,551 2,531 1,529 14,611 — Exchange adjustments — 147 (52 ) 95 — Additions through business combinations — — 233 233 — Interest income 374 95 33 502 — Expenses (7 ) (4 ) (4 ) (15 ) — Settlements and curtailments — — (16 ) (16 ) — Remeasurement (391 ) (125 ) (10 ) (526 ) — Employer contributions 164 132 112 408 82 Scheme participants’ contributions 4 — 14 18 14 Benefits paid (411 ) (275 ) (89 ) (775 ) (96 ) Assets at 31 December 2015 10,284 2,501 1,750 14,535 — Exchange adjustments — 459 305 764 — Interest income 385 108 37 530 — Expenses (7 ) (12 ) — (19 ) — Settlements and curtailments — — (110 ) (110 ) — Remeasurement 2,088 45 62 2,195 — Employer contributions 319 31 131 481 91 Scheme participants’ contributions 4 — 14 18 17 Benefits paid (490 ) (242 ) (92 ) (824 ) (108 ) Assets at 31 December 2016 12,583 2,890 2,097 17,570 — Exchange adjustments — (244 ) 24 (220 ) — Interest income 333 104 33 470 — Expenses (7 ) (12 ) — (19 ) — Settlements and curtailments — — (4 ) (4 ) — Remeasurement 560 290 49 899 — Employer contributions 225 103 116 444 101 Scheme participants’ contributions 4 — 17 21 17 Benefits paid (544 ) (257 ) (80 ) (881 ) (118 ) Assets at 31 December 2017 13,154 2,874 2,252 18,280 — During 2017, the Group made special funding contributions to the UK pension schemes totalling £136 million (2016 – £191 million; 2015 – £85 million) and £78 million (2016 – £nil; 2015 – £111 million) to the US scheme. In 2016, GSK reached an agreement with the trustees of the UK pension schemes to make additional contributions to eliminate the pension deficit identified at the 31 December 2014 actuarial funding valuation. Based on the funding agreements following the 2014 valuation, the additional contributions to eliminate the pension deficit are expected to be £123 million in 2018. The contributions were based on a government bond yield curve approach to selecting the discount rate; the rate chosen included an allowance for expected investment returns which reflected the asset mix of the schemes. Employer contributions for 2018, including special funding contributions, are estimated to be approximately £360 million in respect of defined benefit pension schemes and £90 million in respect of post-retirement benefits. Post-retirement Pensions benefits UK US Rest of World Group Group Movements in defined benefit obligations £m £m £m £m £m Obligations at 1 January 2015 (10,991 ) (3,133 ) (2,176 ) (16,300 ) (1,397 ) Exchange adjustments — (184 ) 78 (106 ) (64 ) Additions through business combinations — — (397 ) (397 ) (11 ) Service cost (77 ) (67 ) (110 ) (254 ) (22 ) Past service cost (25 ) (2 ) 10 (17 ) 8 Interest cost (388 ) (117 ) (46 ) (551 ) (52 ) Settlements and curtailments — (1 ) 25 24 7 Remeasurement 473 95 157 725 62 Scheme participants’ contributions (4 ) — (14 ) (18 ) (14 ) Benefits paid 411 275 89 775 96 Obligations at 31 December 2015 (10,601 ) (3,134 ) (2,384 ) (16,119 ) (1,387 ) Exchange adjustments — (586 ) (396 ) (982 ) (248 ) Service cost (70 ) (66 ) (110 ) (246 ) (31 ) Past service cost (52 ) (1 ) (1 ) (54 ) (3 ) Interest cost (394 ) (135 ) (57 ) (586 ) (56 ) Settlements and curtailments — — 138 138 — Remeasurement (2,253 ) (72 ) (286 ) (2,611 ) (59 ) Scheme participants’ contributions (4 ) — (14 ) (18 ) (17 ) Benefits paid 490 242 92 824 108 Obligations at 31 December 2016 (12,884 ) (3,752 ) (3,018 ) (19,654 ) (1,693 ) Exchange adjustments — 305 (45 ) 260 119 Service cost (79 ) (70 ) (131 ) (280 ) (30 ) Past service cost (37 ) — — (37 ) 2 Interest cost (340 ) (135 ) (49 ) (524 ) (59 ) Settlements and curtailments — — 4 4 — Remeasurement (301 ) (50 ) (63 ) (414 ) 64 Scheme participants’ contributions (4 ) — (17 ) (21 ) (17 ) Benefits paid 544 257 80 881 118 Obligations at 31 December 2017 (13,101 ) (3,445 ) (3,239 ) (19,785 ) (1,496 ) The defined benefit pension obligation is analysed as follows: 2017 2016 2015 £m £m £m Funded (19,052 ) (18,974 ) (15,552 ) Unfunded (733 ) (680 ) (567 ) (19,785 ) (19,654 ) (16,119 ) The liability for the US post-retirement healthcare scheme has been assessed using the same assumptions as for the US pension scheme, together with the assumption for future medical inflation of 6.75% (2016 – 7%), grading down to 5.0% in 2025 and thereafter. At 31 December 2017, the US post-retirement healthcare scheme obligation was £1,254 million (2016 – £1,463 million; 2015 – £1,208 million). Post-retirement benefits are unfunded. The movement in the net defined benefit liability is as follows: 2017 2016 2015 £m £m £m At 1 January (2,084 ) (1,584 ) (1,689 ) Exchange adjustments 40 (218 ) (11 ) Additions through business combinations — — (164 ) Service cost (280 ) (246 ) (254 ) Past service cost (37 ) (54 ) (17 ) Interest cost (54 ) (56 ) (49 ) Settlements and curtailments — 28 8 Remeasurements: Return on plan assets, excluding amounts included in interest 899 2,195 (526 ) Gain from change in demographic assumptions 209 85 120 (Loss)/gain from change in financial assumptions (555 ) (2,770 ) 362 Experience (losses)/gains (68 ) 74 243 Employer contributions 444 481 408 Expenses/other movements (19 ) (19 ) (15 ) At 31 December (1,505 ) (2,084 ) (1,584 ) The remeasurements included within post-retirement benefits are detailed below: 2017 2016 2015 £m £m £m Gain from change in demographic assumptions 47 — 15 (Loss)/gain from change in financial assumptions (1 ) (81 ) 59 Experience gains/(losses) 18 22 (12 ) 64 (59 ) 62 The defined benefit pension obligation analysed by membership category is as follows: 2017 2016 2015 Active 4,611 4,576 5,510 Retired 9,805 9,574 7,969 Deferred 5,369 5,504 4,231 19,785 19,654 17,710 The post-retirement benefit obligation analysed by membership category is as follows: 2017 2016 2015 Active 514 594 499 Retired 981 1,099 887 Deferred 1 — 1 1,496 1,693 1,387 The weighted average duration of the defined benefit obligation is as follows: 2017 2016 2015 Pension benefits 16 16 16 Post-retirement benefits 11 12 12 Sensitivity analysis Effect of changes in assumptions used on the benefit obligations and on the 2018 annual defined benefit pension and post retirement costs. £m A 0.25% decrease in discount rate would have the following approximate effect: Increase in annual pension cost 29 Decrease in annual post-retirement benefits cost (1 ) Increase in pension obligation 800 Increase in post-retirement benefits obligation 41 A one year increase in life expectancy would have the following approximate effect: Increase in annual pension cost 20 Increase in annual post-retirement benefits cost 2 Increase in pension obligation 608 Increase in post-retirement benefits obligation 39 A 1% increase in the rate of future healthcare inflation would have the following approximate effect: Increase in annual post-retirement benefits cost 2 Increase in post-retirement benefits obligation 68 A 0.25% increase in inflation would have the following approximate effect: Increase in annual pension cost 19 Increase in pension obligation 502 |
Other provisions
Other provisions | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Other provisions | 29. Other provisions Legal Major Employee and other restructuring related Other disputes programmes provisions provisions Total £m £m £m £m £m At 1 January 2017 344 554 306 296 1,500 Exchange adjustments (29 ) (16 ) (8 ) (6 ) (59 ) Charge for the year 173 259 50 69 551 Reversed unused (7 ) (43 ) (3 ) (36 ) (89 ) Unwinding of discount 2 4 — 10 16 Utilised (288 ) (233 ) (41 ) (67 ) (629 ) Reclassifications and other movements (9 ) (3 ) — 5 (7 ) Transfer to Pension obligations — (18 ) — — (18 ) At 31 December 2017 186 504 304 271 1,265 To be settled within one year 138 292 90 109 629 To be settled after one year 48 212 214 162 636 At 31 December 2017 186 504 304 271 1,265 Legal and other disputes The Group is involved in a substantial number of legal and other disputes, including notification of possible claims, as set out in Note 45 ‘Legal proceedings’. Provisions for legal and other disputes include amounts relating to product liability, anti-trust, government investigations, contract terminations, self insurance and environmental clean-up. The charge for the year of £166 million (net of reversals and estimated insurance recoveries) primarily related to provisions for product liability cases regarding Paxil and other products, commercial disputes and various other government investigations. The discount on the provisions increased by £2 million in 2017 (2016 – increased by £1 million). The discount was calculated using risk-adjusted projected cash flows and risk-free rates of return. In respect of product liability claims related to certain products, there is sufficient history of claims made and settlements to enable management to make a reliable estimate of the provision required to cover unasserted claims. The ultimate liability for such matters may vary from the amounts provided and is dependent upon the outcome of litigation proceedings, investigations and possible settlement negotiations. It is in the nature of the Group’s business that a number of these matters may be the subject of negotiation and litigation over many years. Litigation proceedings, including the various appeal procedures, often take many years to reach resolution, and out-of-court The Group is in potential settlement discussions in a number of the disputes for which amounts have been provided and, based on its current assessment of the progress of these disputes, estimates that £138 million of the amount provided at 31 December 2017 will be settled within one year. At 31 December 2017, it was expected that £nil million (2016 – £nil) of the provision made for legal and other disputes will be reimbursed by third party insurers. For a discussion of legal issues, see Note 45, ‘Legal proceedings’. Major restructuring programmes In 2013, the Group initiated the Major Change restructuring programme focused on opportunities to simplify supply chain processes, build the Group’s capabilities in manufacturing and R&D and restructure the European Pharmaceuticals business. The Pharmaceuticals restructuring programme, announced in October 2014, has been focused on rescaling commercial operations, global support functions and certain R&D/manufacturing operations across Pharmaceuticals. In addition, an integration restructuring programme was initiated in 2015, following the completion of the Novartis transaction, and the CEO Strategic Initiatives Programme was announced in July 2017. All of these restructuring and integration programmes are now reported together as one combined major restructuring programme. Provisions for staff severance payments are made when management has made a formal decision to eliminate certain positions and this has been communicated to the groups of employees affected and appropriate consultation procedures completed, where appropriate. No provision is made for staff severance payments that are made immediately. Pension augmentations arising from staff redundancies of £18 million (2016 – £23 million) have been charged during the year and then transferred to the pension obligations provision as shown in Note 28, ‘Pensions and other post-employment benefits’. Asset write-downs have been recognised as impairments of property, plant and equipment in Note 17, ‘Property, plant and equipment’. The majority of the amounts provided are expected to be utilised in the next two years. Employee related provisions Employee related provisions include obligations for certain medical benefits to disabled employees and their spouses in the US. At 31 December 2017, the provision for these benefits amounted to £108 million (2016 – £135 million). Other employee benefits reflect a variety of provisions for severance costs, jubilee awards and other long-service benefits. Other provisions Included in other provisions are insurance provisions of £6 million (2016 – £40 million), onerous property lease provisions of £38 million (2016 – £39 million) and a number of other provisions including vehicle insurance and regulatory matters. |
Other non-current liabilities
Other non-current liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Other non-current liabilities | 30. Other non-current 2017 2016 £m £m Accruals and deferred income 104 66 Consumer Healthcare put option liability — 7,420 Other payables 877 959 981 8,445 |
Net debt
Net debt | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Net debt | 31. Net debt 2017 2016 Listing exchange £m £m Current assets: Liquid investments 78 89 Cash and cash equivalents 3,833 4,897 3,911 4,986 Short-term borrowings: Commercial paper (529 ) (1,094 ) Bank loans and overdrafts (236 ) (332 ) Obligations under finance leases (23 ) (23 ) 1.50% US$ US Medium Term Note 2017 New York Stock Exchange — (1,612 ) 5.625% € European Medium Term Note 2017 London Stock Exchange — (1,068 ) 5.65% US$ US Medium Term Note 2018 New York Stock Exchange (2,037 ) — (2,825 ) (4,129 ) Long-term borrowings: 5.65% US$ US Medium Term Note 2018 New York Stock Exchange — (2,216 ) 0.625% € European Medium Term Note 2019 London Stock Exchange (1,324 ) (1,276 ) 0% € European Medium Term Note 2020 London Stock Exchange (1,060 ) — 2.85% US$ US Medium Term Note 2022 New York Stock Exchange (1,474 ) (1,603 ) 2.8% US$ US Medium Term Note 2023 New York Stock Exchange (919 ) (999 ) 1.375% € European Medium Term Note 2024 London Stock Exchange (876 ) (845 ) 4.00% € European Medium Term Note 2025 London Stock Exchange (659 ) (635 ) 1% € European Medium Term Note 2026 London Stock Exchange (617 ) — 3.375% £ European Medium Term Note 2027 London Stock Exchange (593 ) (593 ) 1.375% € European Medium Term Note 2029 London Stock Exchange (439 ) — 5.25% £ European Medium Term Note 2033 London Stock Exchange (986 ) (986 ) 5.375% US$ US Medium Term Note 2034 London Stock Exchange (368 ) (401 ) 6.375% US$ US Medium Term Note 2038 New York Stock Exchange (2,021 ) (2,199 ) 6.375% £ European Medium Term Note 2039 London Stock Exchange (695 ) (695 ) 5.25% £ European Medium Term Note 2042 London Stock Exchange (989 ) (988 ) 4.2% US$ US Medium Term Note 2043 New York Stock Exchange (363 ) (395 ) 4.25% £ European Medium Term Note 2045 London Stock Exchange (789 ) (789 ) Obligations under finance leases (43 ) (41 ) Other long term borrowings (49 ) — (14,264 ) (14,661 ) Net debt (13,178 ) (13,804 ) Current assets Liquid investments are classified as available-for-sale The effective interest rate on cash and cash equivalents at 31 December 2017 was approximately 1.3% (2016 – approximately 1.3%). Cash and cash equivalents at 31 December 2017 earning interest at floating and fixed rates amount to £3,832 million and £1 million respectively (2016 – £4,584 million and £3 million). GSK’s policy regarding the credit quality of cash and cash equivalents is referred to in Note 42, ‘Financial instruments and related disclosures’. Short-term borrowings GSK has a $10 billion (£7.4 billion) US commercial paper programme, of which $0.7 billion (£0.5 billion) was in issue at 31 December 2017 (2016 – $1.4 billion (£1.1 billion)). GSK also has £1.9 billion five year committed facilities and $2.5 billion (£1.9 billion) of 364 day committed facilities. The five-year The weighted average interest rate on commercial paper borrowings at 31 December 2017 was 1.53% (2016 – 0.88%). The weighted average interest rate on current bank loans and overdrafts at 31 December 2017 was 4.65% (2016 – 3.47%). The average effective pre-swap Long-term borrowings At the year-end, pre-swap Long-term borrowings repayable after five years carry interest at effective rates between 1.07% and 6.66%, with repayment dates ranging from 2023 to 2045. Pledged assets The Group held pledged investments in US Treasury Notes with a par value of $105 million (£78 million), (2016 – $105 million (£85 million)) as security against irrevocable letters of credit issued on the Group’s behalf in respect of the Group’s self-insurance activity. Provisions in respect of self-insurance are included within the provisions for legal and other disputes discussed in Note 29, ‘Other provisions’. In addition, £20 million (2016 – £23 million) of assets included in Note 22, ‘Other non-current Finance lease obligations 2017 2016 £m £m Rental payments due within one year 25 25 Rental payments due between one and two years 29 23 Rental payments due between two and three years 9 12 Rental payments due between three and four years 3 7 Rental payments due between four and five years 2 — Rental payments due after five years 10 — Total future rental payments 78 67 Future finance charges (12 ) (3 ) Total finance lease obligations 66 64 |
Contingent liabilities
Contingent liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Contingent liabilities | 32. Contingent liabilities At 31 December 2017, contingent liabilities, comprising guarantees, discounted bills and other items arising in the normal course of business, amounted to £434 million (2016 – £281 million). At 31 December 2017, £2 million (2016 – £1 million) of financial assets were pledged as collateral for contingent liabilities. Provision is made for the outcome of tax, legal and other disputes where it is both probable that the Group will suffer an outflow of funds and it is possible to make a reliable estimate of that outflow. At 31 December 2017, other than for those disputes where provision has been made, it was not possible to make a reliable estimate of the potential outflow of funds that might be required to settle disputes where the possibility of there being an outflow was more than remote. Descriptions of the significant tax, legal and other disputes to which the Group is a party are set out in Note 14, ‘Taxation’ and Note 45, ‘Legal proceedings’. |
Share capital and share premium
Share capital and share premium account | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Share capital and share premium account | 33. Share capital and share premium account Ordinary Shares of 25p each Share Number £m £m Share capital authorised At 31 December 2015 10,000,000,000 2,500 At 31 December 2016 10,000,000,000 2,500 At 31 December 2017 10,000,000,000 2,500 Share capital issued and fully paid At 1 January 2015 5,355,297,232 1,339 2,759 Issued under employee share schemes 6,010,415 1 72 At 31 December 2015 5,361,307,647 1,340 2,831 Issued under employee share schemes 7,008,415 2 87 Ordinary shares acquired by ESOP Trusts — — 36 At 31 December 2016 5,368,316,062 1,342 2,954 Issued under employee share schemes 4,237,758 1 55 Ordinary shares acquired by ESOP Trusts — — 10 At 31 December 2017 5,372,553,820 1,343 3,019 31 December 2017 31 December 2016 000 000 Number of shares issuable under employee share schemes 38,647 71,382 Number of unissued shares not under option 4,588,799 4,560,302 At 31 December 2017, of the issued share capital, 66,696,677 shares were held in the ESOP Trusts, 414,605,950 shares were held as Treasury shares and 4,891,251,193 shares were in free issue. All issued shares are fully paid. The nominal, carrying and market values of the shares held in the ESOP Trusts are disclosed in Note 43, ‘Employee share schemes’. |
Movements in equity
Movements in equity | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Movements in equity | 34. Movements in equity Retained earnings and other reserves amounted to £(4,430) million at 31 December 2017 (2016 – £(3,172) million; 2015 – £943 million) of which £334 million (2016 – £329 million; 2015 – £283 million) relates to joint ventures and associated undertakings. The cumulative translation exchange in equity is as follows: Net translation exchange included in: Non- Total Retained Fair value controlling translation earnings reserve interests exchange £m £m £m £m At 1 January 2015 (137 ) 4 (117 ) (250 ) Exchange movements on overseas net assets (624 ) 6 8 (610 ) At 31 December 2015 (761 ) 10 (109 ) (860 ) Exchange movements on overseas net assets 633 13 603 1,249 At 31 December 2016 (128 ) 23 494 389 Exchange movements on overseas net assets 462 — (149 ) 313 Reclassification of exchange on liquidation or disposal of overseas subsidiaries 109 — — 109 At 31 December 2017 443 23 345 811 The analysis of other comprehensive income by equity category is as follows: Non- Retained Other controlling earnings reserves interests Total 2017 £m £m £m £m Items that may be subsequently reclassified to income statement: Exchange movements on overseas net assets and net investment hedges 462 — — 462 Reclassification of exchange on liquidation or disposal of overseas subsidiaries 109 — — 109 Fair value movements on available-for-sale — (14 ) — (14 ) Reclassification of fair value movements on available-for-sale — (42 ) — (42 ) Deferred tax on fair value movements on available-for-sale — 47 — 47 Deferred tax reversed on reclassification of available for sale investments — (18 ) — (18 ) Fair value movements on cash flow hedges — (10 ) — (10 ) Items that will not be reclassified to income statement: Exchange movements on overseas net assets of non-controlling — — (149 ) (149 ) Remeasurement gains on defined benefit plans 549 — — 549 Tax on remeasurement gains in defined benefit plans (221 ) — — (221 ) Other comprehensive income/(expense) for the year 899 (37 ) (149 ) 713 Non- Retained Other controlling earnings reserves interests Total 2016 £m £m £m £m Items that may be subsequently reclassified to income statement: Exchange movements on overseas net assets and net investment hedges 633 13 — 646 Fair value movements on available-for-sale — 251 — 251 Reclassification of fair value movements on available-for-sale — (245 ) — (245 ) Deferred tax reversed on reclassification of available-for-sale — 51 — 51 Reclassification of cash flow hedges to income statement — 1 — 1 Fair value movements on cash flow hedges — 2 — 2 Deferred tax on fair value movements on cash flow hedges — 2 — 2 Items that will not be reclassified to income statement: Exchange movements on overseas net assets of non-controlling — — 603 603 Remeasurement losses on defined benefit plans (475 ) — — (475 ) Tax on remeasurement losses in defined benefit plans 126 — — 126 Other comprehensive income for the year 284 75 603 962 Non- Retained Other controlling earnings reserves interests Total 2015 £m £m £m £m Items that may be subsequently reclassified to income statement: Exchange movements on overseas net assets and net investment hedges (624 ) 6 — (618 ) Fair value movements on available-for-sale — 416 — 416 Deferred tax on fair value movements on available-for-sale — (91 ) — (91 ) Reclassification of fair value movements on available-for-sale — (346 ) — (346 ) Deferred tax reversed on reclassification of available-for-sale — 36 — 36 Reclassification of cash flow hedges to income statement — 2 — 2 Fair value movements on cash flow hedges — 2 — 2 Share of other comprehensive expense of associates and joint ventures (77 ) — — (77 ) Items that will not be reclassified to income statement: Exchange movements on overseas net assets of non-controlling — — 8 8 Remeasurement gains on defined benefit plans 261 — — 261 Tax on remeasurement gains in defined benefit plans (80 ) — — (80 ) Other comprehensive (expense)/income for the year (520 ) 25 8 (487 ) The analysis of other reserves is as follows: ESOP Trust Fair value Cash flow Other shares reserve hedge reserve reserves Total £m £m £m £m £m At 1 January 2015 (151 ) 274 (13 ) 2,129 2,239 Transferred to income and expense in the year on disposals — (356 ) 2 — (354 ) Transferred to income and expense in the year on impairments — 10 — — 10 Net fair value movement in the year — 367 2 — 369 Ordinary shares acquired by ESOP Trusts (99 ) — — — (99 ) Write-down of shares held by ESOP Trusts 175 — — — 175 At 31 December 2015 (75 ) 295 (9 ) 2,129 2,340 Transferred to income and expense in the year on disposals (16 ) (268 ) — — (284 ) Transferred to income and expense in the year on impairments — 23 — — 23 Net fair value movement in the year — 330 6 — 336 Ordinary shares acquired by ESOP Trusts (576 ) — — — (576 ) Write-down of shares held by ESOP Trusts 381 — — — 381 At 31 December 2016 (286 ) 380 (3 ) 2,129 2,220 Transferred to income and expense in the year on disposals 22 (42 ) — — (20 ) Transferred to income and expense in the year on impairments — — — — — Net fair value movement in the year — (9 ) (8 ) — (17 ) Ordinary shares acquired by ESOP Trusts (656 ) — — — (656 ) Write-down of shares held by ESOP Trusts 520 — — — 520 At 31 December 2017 (400 ) 329 (11 ) 2,129 2,047 Other reserves include various non-distributable pre-merger buy-back |
Related party transactions
Related party transactions | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Related party transactions | 35. Related party transactions At 31 December 2017, GSK owned 32 million shares or 31.4% of Innoviva Inc. which is a biopharmaceutical company listed on NASDAQ. GSK began recognising Innoviva as an associate on 1 September 2015. The royalties due from GSK to Innoviva in the year were £173 million (2016 – £108 million). At 31 December 2017, the balance payable by GSK to Innoviva was £53 million (2016 – £36 million). At 31 December 2017, GSK held a 50% interest in Japan Vaccine Co. Ltd (JVC) through its subsidiary GlaxoSmithKline K.K. This joint venture with Daiichi Sankyo Co., Ltd is primarily responsible for the development and marketing of certain prophylactic vaccines in Japan. During 2017, GSK sold £41 million (2016 – £43 million) of its vaccine products into the joint venture. At 31 December 2017, the trading balance due to GSK from JVC was £11 million (2016 – £9 million) and the balance payable by GSK to JVC was £nil million (2016 – £nil). Loans of £7 million to JVC, £7 million to Medicxi Ventures I LP and £8 million to Index Ventures Life VI (Jersey) LP remained due to GSK at 31 December 2017. The aggregate compensation of the Directors and CET is given in Note 9, ‘Employee costs’. |
Adjustments reconciling profit
Adjustments reconciling profit after tax to operating cash flows | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Adjustments reconciling profit after tax to operating cash flows | 36. Adjustments reconciling profit after tax to operating cash flows 2017 2016 2015 £m £m £m Profit after tax 2,169 1,062 8,372 Tax on profits 1,356 877 2,154 Share of after tax profits of associates and joint ventures (13 ) (5 ) (14 ) Finance expense net of finance income 669 664 653 Depreciation 988 978 892 Amortisation of intangible assets 934 796 738 Impairment and assets written off 1,061 226 822 Profit on sale of businesses (157 ) (5 ) (9,308 ) Profit on sale of intangible assets (46 ) (178 ) (349 ) Profit on sale of investments in associates (94 ) — (843 ) Profit on sale of equity investments (37 ) (254 ) (342 ) Changes in working capital: (Increase)/decrease in inventories (461 ) 70 (111 ) (Increase)/decrease in trade receivables (287 ) (188 ) 98 Increase in trade payables 11 96 40 Decrease/(increase) in other receivables 74 381 (593 ) Contingent consideration paid (see Note 39) (594 ) (358 ) (121 ) Other non-cash 961 2,281 1,986 Increase in other payables 1,741 1,989 276 (Decrease)/increase in pension and other provisions (255 ) (621 ) 100 Share-based incentive plans 333 319 368 Fair value adjustments — (3 ) — Other (95 ) (21 ) (187 ) 6,089 7,044 (3,741 ) Cash generated from operations 8,258 8,106 4,631 |
Reconciliation of net cash flow
Reconciliation of net cash flow to movement in net debt | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Reconciliation of net cash flow to movement in net debt | 37. Reconciliation of net cash flow to movement in net debt 2017 2016 2015 £m £m £m Net debt at beginning of year (13,804 ) (10,727 ) (14,377 ) (Decrease)/increase in cash and bank overdrafts (905 ) (1,164 ) 1,503 (Decrease)/increase in liquid investments (4 ) — 2 Net increase in long-term loans (2,233 ) — — Net repayment of/(increase in) short-term loans 3,200 (148 ) 2,412 Net repayment of obligations under finance leases 23 18 25 Exchange adjustments 585 (1,781 ) (268 ) Other non-cash (40 ) (2 ) (24 ) Movement in net debt 626 (3,077 ) 3,650 Net debt at end of year (13,178 ) (13,804 ) (10,727 ) At 1 January Profit Reclass- At 31 December 2017 Exchange Other and loss ifications Disposals Cash flow 2017 Analysis of changes in net debt £m £m £m £m £m £m £m £m Liquid investments 89 (7 ) — — — — (4 ) 78 Cash and cash equivalents 4,897 (106 ) — — — (6 ) (952 ) 3,833 Overdrafts (292 ) 6 — — — — 53 (233 ) 4,605 (100 ) — — — (6 ) (899 ) 3,600 Debt due within one year: Commercial paper (1,094 ) 37 — — — — 528 (529 ) European and US Medium Term Notes (2,680 ) 121 — — (2,114 ) — 2,636 (2,037 ) Other (63 ) 2 (5 ) — (19 ) — 59 (26 ) (3,837 ) 160 (5 ) — (2,133 ) — 3,223 (2,592 ) Debt due after one year: European and US Medium Term Notes (14,620 ) 530 4 (16 ) 2,114 — (2,233 ) (14,221 ) Other (41 ) 2 (23 ) — 19 — — (43 ) (14,661 ) 532 (19 ) (16 ) 2,133 — (2,233 ) (14,264 ) Net debt (13,804 ) 585 (24 ) (16 ) — (6 ) 87 (13,178 ) Analysis of changes in liabilities from financing activities Debt due within one year (3,837 ) 160 (5 ) — (2,133 ) — 3,223 (2,592 ) Debt due after one year (14,661 ) 532 (19 ) (16 ) 2,133 — (2,233 ) (14,264 ) Hedge of borrowings: Derivative financial instruments (38 ) — 37 5 — — (2 ) 2 Other financing items — 91 — — — — (91 ) — Interest payable (158 ) 4 1 (731 ) (100 ) — 781 (203 ) Total liabilities from financing activities (18,694 ) 787 14 (742 ) (100 ) — 1,678 (17,057 ) For further information on significant changes in net debt see Note 31, ‘Net debt’. |
Acquisitions and disposals
Acquisitions and disposals | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Acquisitions and disposals | 38. Acquisitions and disposals Details of the acquisition and disposal of significant subsidiaries and associates, joint ventures and other businesses are given below: 2017 Business acquisitions There were no business acquisitions during 2017. Business disposals GSK made a number of small business disposals during the year for a net cash consideration of £342 million, including contingent consideration receivable of £86 million. The profit on disposal was determined as follows: Total £m Consideration including currency forwards and purchase adjustments 342 Net assets sold: Goodwill (16 ) Intangible assets (21 ) Property, plant and equipment (18 ) Inventory (11 ) Cash and cash equivalents (6 ) Other net assets (5 ) (77 ) Transaction costs (8 ) Reclassification of exchange from other comprehensive income (100 ) Profit on disposal 157 Investment in associates and joint ventures During the year, GSK made cash investments of £15 million into associates and joint ventures. In addition, GSK sold its holdings in two associates for £198 million in cash. Total £m Cash consideration 198 Net book value of shares (92 ) Reclassification of exchange from other comprehensive income (7 ) Transaction costs (5 ) Profit on disposal 94 Cash flows Associates Associates Business and JV and JV disposals investments disposals £m £m £m Cash consideration 256 (15 ) 198 Net deferred consideration received 39 — — Cash and cash equivalents divested (6 ) — — Transaction costs paid (7 ) — (2 ) Cash inflow 282 (15 ) 196 2016 Business acquisitions GSK completed two small business acquisitions during 2016. Cash consideration of £24 million was paid in the year to acquire the HIV R&D preclinical and discovery stage portfolio from Bristol Myers Squibb. Further consideration, contingent on commercial milestones and future sales performance, may be due, and an initial estimate of £40 million was recognised for this contingent consideration. Intangible assets acquired were valued at £57 million and goodwill of £7 million was recognised. GSK formed Galvani Bioelectronics Limited during the year and acquired intangible assets of £45 million and cash and cash equivalents of £41 million from Verily Life Sciences LLC in return for a 45% shareholding in Galvani Bioelectronics. The fair value of this shareholding was £47 million, and GSK also recognised a credit of £39 million in non-controlling Business disposals GSK also made a number of small business disposals in the year for net cash consideration of £72 million. In addition, deferred consideration receivable of £43 million was recognised. Cash flows Business Business acquisitions disposals £m £m Cash consideration (paid)/received after purchase adjustments (24 ) 72 Cash and cash equivalents acquired 41 — Cash inflow 17 72 In addition, GSK made cash investments of £11 million into associates and joint ventures. 2015 Business acquisitions Novartis Consumer Healthcare and Vaccines businesses The three-part inter-conditional transaction with Novartis AG involving the Consumer Healthcare, Vaccines and Oncology businesses completed on 2 March 2015. GSK and Novartis have contributed their respective Consumer Healthcare businesses into a Consumer Healthcare Joint Venture in a non-cash Other business acquisitions In addition, GSK completed one smaller Vaccines business acquisition for cash consideration of £120 million, net of cash acquired, and the fair value of existing investments of £15 million. This represented goodwill of £22 million and intangible assets of £124 million less other net liabilities of £11 million. The fair values of the assets acquired in business combinations, including goodwill, are set out in the table below. Novartis Consumer Novartis Healthcare Vaccines business business Other £m £m £m Net assets acquired: Intangible assets 6,003 2,680 124 Property, plant and equipment 249 434 1 Inventory 257 347 — Trade and other receivables 400 162 2 Other assets including cash and cash equivalents 304 283 19 Trade and other payables (402 ) (107 ) (3 ) Deferred tax liabilities (1,154 ) (78 ) (26 ) Other liabilities (165 ) (299 ) — 5,492 3,422 117 Non-controlling (2,150 ) (19 ) — Goodwill 774 576 22 4,116 3,979 139 Consideration settled by shares in GSK Consumer Healthcare Holdings 4,116 — — Cash consideration paid after purchase adjustments — 3,461 124 Fair value of equity investment disposal — — 15 Contingent consideration — 594 — Deferred tax on contingent consideration — (52 ) — Loss on settlement of pre-existing — (24 ) — Total consideration 4,116 3,979 139 The non-controlling The goodwill in the businesses acquired represents the potential for further synergies arising from combining the acquired businesses with GSK’s existing businesses together with the value of the workforce acquired. The majority of the goodwill recognised is not expected to be deductible for tax purposes. Total transaction costs recognised in 2014 and 2015 for the acquisitions from Novartis amounted to £102 million. Between 2 March 2015 and 31 December 2015, turnover of £1,941 million arising from the Novartis Consumer Healthcare and Vaccines businesses was included in Group turnover. If the businesses had been acquired at the beginning of the year, it is estimated that Group turnover in 2015 would have been approximately £320 million higher. These businesses have been integrated into the Group’s existing activities and it is not practical to identify the impact on the Group profit in the period. Business disposals Oncology GSK has divested its marketed Oncology business, related R&D activities and rights to its AKT inhibitor and also granted commercialisation partner rights for future oncology products to Novartis for consideration of $16 billion (£10,395 million) before purchase adjustments. Other business disposals GSK also made a number of small business disposals in the period for net cash consideration of £309 million. Profit on disposal of the businesses has been determined as follows: Oncology Other £m £m Cash consideration including currency forwards and purchase adjustments 10,060 309 Net assets sold: Goodwill (497 ) (14 ) Intangible assets (516 ) (107 ) Property, plant and equipment — (25 ) Inventory — (51 ) Cash — (5 ) Other net assets — (6 ) (1,013 ) (208 ) Loss on currency forwards booked in 2014 299 — Disposal costs (118 ) (21 ) Profit on disposal 9,228 80 Associates and joint ventures During the year, GSK made cash investments of £16 million into associates and joint ventures. In addition, in March 2015, GSK sold half of its shareholding in Aspen, representing 6.2% of the issued share capital of the company, for £571 million in cash. As a result of the sale, the Group was no longer considered to have the ability to exert significant influence over Aspen and the Group’s remaining investment was transferred from Investments in associates to Other investments. £m Cash consideration 571 Net book value of shares (143 ) Reclassification of exchange from other comprehensive income (30 ) Transaction fees (7 ) Other items (5 ) Profit on disposal 386 Cash flows Business Business Associates and Total Cash consideration (paid)/received after purchase adjustments (3,585 ) 10,369 571 7,355 Cash and cash equivalents acquired/(divested) 404 (5 ) — 399 Deferred cash proceeds — (38 ) — (38 ) Contingent consideration paid (338 ) — — (338 ) Transaction costs and other (22 ) (80 ) (7 ) (109 ) Cash (outflow)/inflow (3,541 ) 10,246 564 7,269 |
Contingent consideration liabil
Contingent consideration liabilities | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Contingent consideration liabilities | 39. Contingent consideration liabilities The consideration for certain acquisitions includes amounts contingent on future events such as development milestones or sales performance. The Group has provided for the fair value of this contingent consideration as follows: Shionogi- Novartis Other Total At 1 January 2015 1,684 — 40 1,724 Additions through business combinations — 594 — 594 Remeasurement through income statement 1,874 111 1 1,986 Cash payments: operating cash flows (121 ) — — (121 ) Cash payments: investing activities (38 ) (300 ) — (338 ) Other movements 10 — — 10 At 31 December 2015 3,409 405 41 3,855 Additions through business combinations 154 — 40 194 Remeasurement through income statement 2,162 152 (33 ) 2,281 Cash payments: operating cash flows (351 ) (5 ) (2 ) (358 ) Cash payments: investing activities (66 ) (7 ) — (73 ) Other movements (4 ) — 1 (3 ) At 31 December 2016 5,304 545 47 5,896 Remeasurement through income statement 909 53 (1 ) 961 Cash payments: operating cash flows (587 ) (7 ) — (594 ) Cash payments: investing activities (84 ) (7 ) — (91 ) At 31 December 2017 5,542 584 46 6,172 Of the contingent consideration payable at 31 December 2017, £1,076 million (2016 – £561 million) is expected to be paid within one year. The contingent consideration payable in respect of the Novartis Vaccines business included a sales milestone of $450 million which was settled in January 2018. The consideration payable for the acquisition of the Shionogi-ViiV Healthcare joint venture and the Novartis Vaccines business is expected to be paid over a number of years. As a result, the total estimated liabilities are discounted to their present values, shown above. The Shionogi-ViiV Healthcare contingent consideration liability is discounted at 8.5% and the Novartis Vaccines contingent consideration liability is discounted partly at 8% and partly at 9%. The Shionogi-ViiV Healthcare contingent consideration liability is calculated based on the forecast sales performance of specified products, principally dolutegravir, over the life of those products. The table below shows on an indicative basis the income statement and balance sheet sensitivity to reasonably possible changes in key inputs to the valuations of the contingent consideration liabilities. Increase/(decrease) in financial liability and loss/(gain) in Income statement Shionogi- Novartis 10% increase in sales forecasts 535 56 10% decrease in sales forecasts (535 ) (55 ) 1% increase in discount rate (228 ) (18 ) 1% decrease in discount rate 245 20 5% increase in probability of milestone success 6 5% decrease in probability of milestone success (6 ) 10 cent appreciation of US Dollar 329 17 10 cent depreciation of US Dollar (284 ) (15 ) 10 cent appreciation of Euro 95 25 10 cent depreciation of Euro (80 ) (21 ) An explanation of the accounting for ViiV Healthcare is set out on page 59. |
Non-controlling interests
Non-controlling interests | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Non-controlling interests | 40. Non-controlling The Group has two subgroups that have material non-controlling ViiV Healthcare 2017 2016 2015 Turnover 4,269 3,527 2,330 Profit/(loss) after taxation 825 (1,249 ) (1,426 ) Other comprehensive income 20 36 7 Total comprehensive income/(expense) 845 (1,213 ) (1,419 ) 2017 £m 2016 Non-current 2,736 3,064 Current assets 2,533 2,357 Total assets 5,269 5,421 Current liabilities (2,409 ) (1,977 ) Non-current (8,011 ) (7,983 ) Total liabilities (10,420 ) (9,960 ) Net liabilities (5,151 ) (4,539 ) 2017 2016 2015 Net cash inflow from operating activities 2,132 1,750 1,097 Net cash outflow from investing activities (207 ) (326 ) (63 ) Net cash outflow from financing activities (1,820 ) (1,023 ) (814 ) Increase in cash and bank overdrafts in the year 105 401 220 The above financial information relates to the ViiV Healthcare group on a stand-alone basis, before the impact of Group-related adjustments, primarily related to the recognition of preferential dividends. The profit after taxation of £825 million (2016 – loss after taxation of £1,249 million; 2015 – loss after taxation of £1,426 million) is stated after charging preferential dividends payable to GSK, Shionogi and Pfizer and after a charge of £909 million (2016 – £2,186 million; 2015 – £1,874 million) for remeasurement of the contingent consideration payable for the acquisition of the former Shionogi-ViiV Healthcare joint venture. This consideration is expected to be paid over a number of years. The following amounts attributable to the ViiV Healthcare group are included in GSK’s Consolidated statement of comprehensive income, Consolidated statement of changes in equity and Consolidated balance sheet: 2017 2016 2015 Total comprehensive income/(expense) for the year attributable to non-controlling 187 (83 ) (143 ) Dividends paid to non-controlling 316 152 163 Non-controlling (476 ) (353 ) Consumer Healthcare Joint Venture 2017 £m 2016 2015 Turnover 7,003 6,530 4,627 Profit/(loss) after taxation 1,211 660 (39 ) Other comprehensive income (387 ) 1,640 72 Total comprehensive income 824 2,300 33 2017 £m 2016 Non-current 12,771 13,315 Current assets 3,282 3,996 Total assets 16,053 17,311 Current liabilities (2,675 ) (3,060 ) Non-current (1,537 ) (2,062 ) Total liabilities (4,212 ) (5,122 ) Net assets 11,841 12,189 2017 £m 2016 2015 Net cash inflow from operating activities 883 1,496 277 Net cash inflow/(outflow) from investing activities 270 (537 ) (691 ) Net cash outflow from financing activities (1,194 ) (980 ) (42 ) Decrease in cash and bank overdrafts in the year (41 ) (21 ) (456 ) The above financial information relates to the Consumer Healthcare Joint Venture on a stand-alone basis, before the impact of Group-related adjustments but after major restructuring charges. The following amounts attributable to the Consumer Healthcare Joint Venture are included in GSK’s Consolidated statement of comprehensive income, Consolidated statement of changes in equity and Consolidated balance sheet: 2017 2016 2015 £m £m £m Total comprehensive income for the year attributable to non-controlling 296 730 14 Dividends paid to non-controlling 420 346 — Non-controlling 3,631 3,755 |
Commitments
Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Commitments | 41. Commitments 2017 2016 Contractual obligations and commitments £m £m Contracted for but not provided in the financial statements: Intangible assets 5,254 7,199 Property, plant and equipment 584 496 Investments 107 166 Purchase commitments 346 52 Pensions 738 874 Other commitments 38 143 Interest on loans 8,510 9,410 Finance lease charges 12 3 15,589 18,343 The commitments related to intangible assets include milestone payments, which are dependent on successful clinical development or on meeting specified sales targets, and which represent the maximum that would be paid if all milestones, however unlikely, are achieved. The amounts are not risk-adjusted or discounted. The decrease in intangible commitments in 2017 is attributable to amendments made to the agreement with Adaptimmune Therapeutics plc and reduction in commitments to third parties such as Ionis Pharmaceuticals, Inc. In 2016, GSK reached an agreement with the trustees of the UK pension schemes to make additional contributions to eliminate the pension deficit identified at the 31 December 2014 actuarial funding valuation. A payment of £123 million is due in 2018 and each subsequent year up to, and including 2023. The table above includes this commitment, but excludes the normal ongoing annual funding requirement in the UK of approximately £130 million. The Group also has other commitments which principally relate to revenue payments to be made under licences and other alliances. Commitments in respect of future interest payable on loans are disclosed before taking into account the effect of interest rate swaps. Commitments under non-cancellable 2017 2016 Commitments under non-cancellable £m £m Rental payments due within one year 186 153 Rental payments due between one and two years 149 129 Rental payments due between two and three years 122 94 Rental payments due between three and four years 107 74 Rental payments due between four and five years 94 66 Rental payments due after five years 387 324 Total commitments under non-cancellable 1,045 840 |
Financial instruments and relat
Financial instruments and related disclosures | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Financial instruments and related disclosures | 42. Financial instruments and related disclosures GSK uses a variety of financial instruments to finance its operations and derivative financial instruments to manage market risks from these operations. These derivatives, principally comprising interest rate swaps, foreign exchange forward contracts and swaps, are used to swap borrowings and liquid assets into currencies required for Group purposes and to manage exposure to financial risks from changes in foreign exchange rates and interest rates. GSK does not hold or issue derivatives for speculative purposes and GSK’s Treasury policies specifically prohibit such activity. All transactions in financial instruments are undertaken to manage the risks arising from underlying business activities. Capital management GSK’s financial strategy supports the Group’s strategic priorities and is regularly reviewed by the Board. GSK manages the capital structure of the Group through an appropriate mix of debt and equity. The capital structure of the Group consists of net debt of £13.2 billion (see Note 31, ‘Net debt’) and total equity, including that provided by non-controlling non-controlling Our long-term credit rating with Standard and Poor’s is A+ (stable outlook) and with Moody’s Investor Services (‘Moody’s’) it is A2 (stable outlook). The Group’s short-term credit ratings are A-1 P-1 Liquidity risk management GSK’s policy is to borrow centrally in order to meet anticipated funding requirements. The strategy is to diversify liquidity sources using a range of facilities and to maintain broad access to financial markets. At 31 December 2017, GSK had £2.8 billion of borrowings repayable within one year and held £3.9 billion of cash and cash equivalents and liquid investments of which £2.5 billion was held centrally. GSK has access to short-term finance under a $10 billion (£7.4 billion) US commercial paper programme; $0.7 billion (£0.5 billion) was in issue at 31 December 2017 (2016 – $1.4 billion). GSK also has £1.9 billion five year committed facilities and $2.5 billion (£1.9 billion) of 364 day committed facilities. The five-year committed facilities were agreed in September 2015 and were extended by one year to 2021 in September 2016. The 364 day committed facilities were agreed in August 2017. These facilities were undrawn at 31 December 2017. GSK considers this level of committed facilities to be adequate, given current liquidity requirements. GSK has a £15 billion European Medium Term Note programme and at 31 December 2017, £9.0 billion of notes were in issue under this programme. The Group also had $9.7 billion (£7.2 billion) of notes in issue at 31 December 2017 under a US shelf registration. GSK’s borrowings mature at dates between 2018 and 2045. The put options owned by minority interest partners in ViiV Healthcare and the Consumer Healthcare JV business are both now exercisable. In reviewing liquidity requirements GSK considers that sufficient financing options are available should the put options be exercised. Market risk Interest rate risk management GSK’s objective is to minimise the effective net interest cost and to balance the mix of debt at fixed and floating interest rates over time. The policy on interest rate risk management limits the amount of floating interest payments to a prescribed percentage of operating profit. Foreign exchange risk management Foreign currency transaction exposures arising on external trade flows are not normally hedged. Foreign currency transaction exposures arising on internal trade flows are selectively hedged. The Group’s objective is to minimise the exposure of overseas operating subsidiaries to transaction risk by matching local currency income with local currency costs where possible. GSK’s internal trading transactions are matched centrally and inter-company payment terms are managed to reduce foreign currency risk. Foreign currency cash flows can be hedged selectively including hedges of the foreign exchange risk arising from acquisitions and disposals of assets. Where possible, GSK manages the cash surpluses or borrowing requirements of subsidiary companies centrally using forward contracts to hedge future repayments back into the originating currency. In order to reduce foreign currency translation exposure, the Group seeks to denominate borrowings in the currencies of our principal assets and cash flows. These are primarily denominated in US Dollars, Euros and Sterling. Borrowings can be swapped into other currencies as required. Borrowings denominated in, or swapped into, foreign currencies that match investments in overseas Group assets may be treated as a hedge against the relevant assets. Forward contracts in major currencies are also used to reduce exposure to the Group’s investment in overseas assets (see ‘Net investment hedges’ section of this note for further details). Credit risk The Group considers its maximum credit risk at 31 December 2017 to be £9,988 million (31 December 2016 – £11,002 million) which is the total of the Group’s financial assets with the exception of ’Other investments’ (comprising equity investments) which bear equity risk rather than credit risk. See page 216 for details on the Group’s total financial assets. At 31 December 2017, GSK’s greatest concentrations of credit risk were £0.5 billion with Citibank (A/A1) and £0.5 billion with one US wholesaler (BBB+/Baa2) (2016 – £0.9 billion with Citibank (A/A1)). Treasury-related credit risk GSK sets global counterparty limits for each of GSK’s banking and investment counterparties based on long-term credit ratings from Moody’s and Standard and Poor’s. Usage of these limits is monitored daily. GSK actively manages its exposure to credit risk, reducing surplus cash balances wherever possible. This is part of GSK’s strategy to regionalise cash management and to concentrate cash centrally as much as possible. The table below sets out the credit exposure to counterparties by rating for liquid investments, cash and cash equivalents and derivatives. The gross asset position on each derivative contract is considered for the purpose of this table, although, under ISDA agreements, the amount at risk is the net position with each counterparty. Table (e) on page 220 sets out the Group’s financial assets and liabilities on an offset basis. At 31 December 2017, £45 million of cash is categorised as held with unrated or sub-investment BBB-/Baa3) BBB-/ 2017 AAA/Aaa AA/Aa A/A BBB/Baa BB+/Ba1 Total Bank balances and deposits — 423 1,167 80 45 1,715 US Treasury and Treasury repo only money market funds 1,715 — — — — 1,715 Liquidity funds 403 — — — — 403 Government securities — 77 — 1 — 78 3rd party financial derivatives — 26 42 — — 68 Total 2,118 526 1,209 81 45 3,979 2016 AAA/Aaa AA/Aa A/A BBB/Baa BB+/Ba1 Total Bank balances and deposits — 542 1,560 388 93 2,583 US Treasury and Treasury repo only money market funds 2,248 — — — — 2,248 Liquidity funds 66 — — — — 66 Government securities — 85 — 4 — 89 3rd party financial derivatives — 70 86 — — 156 Total 2,314 697 1,646 392 93 5,142 Credit ratings are assigned by Standard and Poor’s and Moody’s respectively. Where the opinions of the two rating agencies differ, GSK assigns the lower rating of the two to the counterparty. Where local rating agency or Fitch data is the only source available, the ratings are converted to global ratings equivalent to those of Standard and Poor’s or Moody’s using published conversion tables. GSK’s centrally managed cash reserves amounted to £2.5 billion at 31 December 2017, all available within three months. This includes £1.7 billion centrally managed cash held by ViiV Healthcare, a 78.3% owned subsidiary. The Group has invested centrally managed liquid assets in bank deposits, Aaa/AAA rated US Treasury and Treasury repo only money market funds and Aaa/AAA rated liquidity funds. Wholesale and retail credit risk Outside the US, no customer accounts for more than 5% of the Group’s trade receivables balance. In the US, in line with other pharmaceutical companies, the Group sells its products through a small number of wholesalers in addition to hospitals, pharmacies, physicians and other groups. Sales to the three largest wholesalers amounted to approximately 83% of the sales of the US Pharmaceuticals and Vaccines businesses in 2017. At 31 December 2017, the Group had trade receivables due from these three wholesalers totalling £1,265 million (2016 – £1,323 million). The Group is exposed to a concentration of credit risk in respect of these wholesalers such that, if one or more of them encounters financial difficulty, it could materially and adversely affect the Group’s financial results. The Group’s credit risk monitoring activities relating to these wholesalers include a review of their quarterly financial information and Standard & Poor’s credit ratings, development of GSK internal risk ratings, and establishment and periodic review of credit limits. However, the Group believes there is no further credit risk provision required in excess of the normal provision for bad and doubtful debts (see Note 24, ‘Trade and other receivables’). Fair value of financial assets and liabilities The table on page 216 presents the carrying amounts and the fair values of the Group’s financial assets and liabilities at 31 December 2017 and 31 December 2016. The fair values of the financial assets and liabilities are included at the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values: • Cash and cash equivalents – approximates to the carrying amount • Liquid investments – based on quoted market prices or calculated based on observable inputs in the case of marketable securities; based on principal amounts in the case of non-marketable • Other investments – equity investments traded in an active market determined by reference to the relevant stock exchange quoted bid price; other equity investments determined by reference to the current market value of similar instruments or by reference to the discounted cash flows of the underlying net assets • Short-term loans, overdrafts and commercial paper – approximates to the carrying amount because of the short maturity of these instruments • Long-term loans – based on quoted market prices in the case of European and US Medium term notes and other fixed rate borrowings (a Level 1 fair value measurement); approximates to the carrying amount in the case of floating rate bank loans and other loans • Contingent consideration for business acquisitions – based on present values of expected future cash flows • Interest rate swaps, foreign exchange forward contracts, swaps and options – based on the present value of contractual cash flows or option valuation models using market sourced data (exchange rates or interest rates) at the balance sheet date • Receivables and payables, including put options – approximates to the carrying amount • Company-owned life insurance policies – based on cash surrender value • Lease obligations – approximates to the carrying amount. Fair value of investments in GSK shares At 31 December 2017, the Employee Share Ownership Plan (ESOP) Trusts held GSK shares with a carrying value of £400 million (2016 – £286 million) and a fair value of £882 million (2016 – £667 million) based on quoted market price. The shares are held by the ESOP Trusts to satisfy future exercises of options and awards under employee incentive schemes. In 2017, the carrying value, which is the lower of cost or expected proceeds, of these shares has been recognised as a deduction from other reserves. At 31 December 2017, GSK held Treasury shares at a cost of £5,800 million (2016 – £6,451 million) which has been deducted from retained earnings. 2017 2016 Notes Carrying Fair Carrying Fair Available-for-sale Liquid investments (Government bonds) a 78 78 89 89 Other investments a 918 918 985 985 Loans and receivables: Cash and cash equivalents 3,833 3,833 4,897 4,897 Trade and other receivables and Other non-current b 5,495 5,495 5,499 5,499 Financial assets at fair value through profit or loss: Trade and other receivables and Other non-current a,b 506 506 361 361 Derivatives designated as at fair value through profit or loss a,d,e 5 5 23 23 Derivatives classified as held for trading under IAS 39 a,d,e 71 71 133 133 Total financial assets 10,906 10,906 11,987 11,987 Financial liabilities measured at amortised cost: Borrowings excluding obligations under finance leases: – bonds in a designated hedging relationship d (4,315 ) (4,405 ) (3,189 ) (3,335 ) – other bonds (11,894 ) (14,743 ) (14,111 ) (16,996 ) – bank loans and overdrafts (236 ) (236 ) (332 ) (332 ) – commercial paper (529 ) (529 ) (1,094 ) (1,094 ) – other borrowings (49 ) (49 ) — — Total borrowings excluding obligations under finance leases f (17,023 ) (19,962 ) (18,726 ) (21,757 ) Obligations under finance leases (66 ) (66 ) (64 ) (64 ) Total borrowings (17,089 ) (20,028 ) (18,790 ) (21,821 ) Trade and other payables, Other provisions and certain Other non-current c (20,325 ) (20,325 ) (18,713 ) (18,713 ) Financial liabilities at fair value through profit or loss: Contingent consideration liabilities a,c (6,172 ) (6,172 ) (5,896 ) (5,896 ) Derivatives designated as at fair value through profit or loss a,d,e (26 ) (26 ) (92 ) (92 ) Derivatives classified as held for trading under IAS 39 a,d,e (48 ) (48 ) (102 ) (102 ) Total financial liabilities (43,660 ) (46,599 ) (43,593 ) (46,624 ) Net financial assets and financial liabilities (32,754 ) (35,693 ) (31,606 ) (34,637 ) The valuation methodology used to measure fair value in the above table is described and categorised on page 215. Trade and other receivables, Other non-current non-current (a) Financial instruments held at fair value The following tables categorise the Group’s financial assets and liabilities held at fair value by the valuation methodology applied in determining their fair value. Where possible, quoted prices in active markets are used (Level 1). Where such prices are not available, the asset or liability is classified as Level 2, provided all significant inputs to the valuation model used are based on observable market data. If one or more of the significant inputs to the valuation model is not based on observable market data, the instrument is classified as Level 3. Other investments classified as Level 3 in the tables below comprise equity investments in unlisted entities with which the Group has entered into research collaborations and also investments in emerging life science companies. Level 1 Level 2 Level 3 Total At 31 December 2017 £m £m £m £m Financial assets at fair value Available–for–sale financial assets: Liquid investments 77 1 — 78 Other investments 535 — 383 918 Other non-current — — 38 38 Financial assets at fair value through profit or loss: Other non-current — 382 44 426 Trade and other receivables — — 42 42 Derivatives designated as at fair value through profit or loss — 5 — 5 Derivatives classified as held for trading under IAS 39 — 62 9 71 612 450 516 1,578 Financial liabilities at fair value Financial liabilities at fair value through profit or loss: Contingent consideration liabilities — — (6,172 ) (6,172 ) Derivatives designated as at fair value through profit or loss — (26 ) — (26 ) Derivatives classified as held for trading under IAS 39 — (47 ) (1 ) (48 ) — (73 ) (6,173 ) (6,246 ) Level 1 Level 2 Level 3 Total At 31 December 2016 £m £m £m £m Financial assets at fair value Available–for–sale financial assets: Liquid investments 84 5 — 89 Other investments 580 — 405 985 Other non-current — — 6 6 Financial assets at fair value through profit or loss: Other non-current — 355 — 355 Derivatives designated as at fair value through profit or loss — 23 — 23 Derivatives classified as held for trading under IAS 39 — 133 — 133 664 516 411 1,591 Financial liabilities at fair value Financial liabilities at fair value through profit or loss: Contingent consideration liabilities — — (5,896 ) (5,896 ) Derivatives designated as at fair value through profit or loss — (92 ) — (92 ) Derivatives classified as held for trading under IAS 39 — (101 ) (1 ) (102 ) — (193 ) (5,897 ) (6,090 ) Movements in the year for financial instruments measured using Level 3 valuation methods are presented below: 2017 2016 £m £m At 1 January (5,486 ) (3,582 ) Net losses recognised in the income statement (970 ) (2,283 ) Net gains recognised in other comprehensive income 22 29 Contingent consideration for businesses divested/acquired during the year 80 (194 ) Payment of contingent consideration liabilities 685 431 Additions 117 81 Disposals (52 ) (15 ) Transfers from Level 3 (24 ) (11 ) Exchange (29 ) 58 At 31 December (5,657 ) (5,486 ) The net losses of £970 million (2016 – £2,283 million) attributable to Level 3 financial instruments which were recognised in the income statement were all attributable to financial instruments which were held at the end of the year. Losses of £971 million (2016 – £2,283 million) were reported in Other operating income and income of £1 million (2016 – £nil) was recorded in Finance income. £909 million (2016 – £2,162 million) arose from remeasurement of the contingent consideration payable for the acquisition of the former Shionogi-ViiV Healthcare joint venture and £53 million (2016 – £152 million) arose from remeasurement of the contingent consideration payable on the acquisition in 2015 of the Novartis Vaccines business. Net gains of £22 million (2016 – £29 million) attributable to Level 3 financial instruments reported in Other comprehensive income as Fair value movements on available-for-sale Financial liabilities measured using Level 3 valuation methods at 31 December included £5,542 million (2016 – £5,304 million) in respect of contingent consideration payable for the acquisition in 2012 of the former Shionogi-ViiV Healthcare joint venture. This consideration is expected to be paid over a number of years and will vary in line with the future performance of specified products and movements in certain foreign currencies. They also included £584 million (2016 – £545 million) in respect of contingent consideration for the acquisition in 2015 of the Novartis Vaccines business. This consideration is expected to be paid over a number of years and will vary in line with the future performance of specified products, the achievement of certain milestone targets and movements in certain foreign currencies. Sensitivity analysis on these balances is provided in Note 39, ‘Contingent consideration liabilities’. (b) Trade and other receivables and Other non-current The following table reconciles financial instruments within Trade and other receivables and Other non-current non-interest non-current Non-financial 2017 2016 At fair value Loans and Financial Non- Total At fair value Loans and Financial Non- Total Trade and other receivables (Note 24) 42 5,148 5,190 810 6,000 — 5,135 5,135 891 6,026 Other non-current 464 347 811 602 1,413 361 364 725 474 1,199 506 5,495 6,001 1,412 7,413 361 5,499 5,860 1,365 7,225 The following table shows the ageing of such financial assets which are past due and for which no provision for bad or doubtful debts has been made: 2017 2016 Past due by 1–30 days 142 137 Past due by 31–90 days 70 178 Past due by 91–180 days 64 55 Past due by 181–365 days 27 53 Past due by more than 365 days 108 98 411 521 (c) Trade and other payables, Other provisions, Other non-current The following table reconciles financial instruments within Trade and other payables, Other provisions, Other non-current non-interest Non-financial 2017 2016 At fair value At fair value through Other Financial Non-financial through Other Financial Non-financial profit or loss liabilities instruments instruments Total profit or loss liabilities instruments instruments Total £m £m £m £m £m £m £m £m £m £m Trade and other payables (Note 27) — (20,129 ) (20,129 ) (841 ) (20,970 ) — (11,041 ) (11,041 ) (923 ) (11,964 ) Other provisions (Note 29) — (117 ) (117 ) (1,148 ) (1,265 ) — (113 ) (113 ) (1,387 ) (1,500 ) Other non-current — (79 ) (79 ) (902 ) (981 ) — (7,559 ) (7,559 ) (886 ) (8,445 ) Contingent consideration liabilities (Note 39) (6,172 ) — (6,172 ) — (6,172 ) (5,896 ) — (5,896 ) — (5,896 ) (6,172 ) (20,325 ) (26,497 ) (2,891 ) (29,388 ) (5,896 ) (18,713 ) (24,609 ) (3,196 ) (27,805 ) (d) Derivative financial instruments and hedging programmes The following table sets out the fair values of derivatives held by GSK. All the derivative liabilities and £68 million (2016 – £156 million) of the derivative assets have a maturity of less than one year. 2017 Fair value 2016 Assets Liabilities Assets Liabilities Net investment hedges – Foreign exchange contracts (principal amount – £6,333 million (2016 – £5,362 million)) 5 (25 ) 18 (92 ) Cash flow hedges – Foreign exchange contracts (principal amount – £38 million (2016 – £170 million)) — (1 ) 5 — Derivatives designated as at fair value through profit or loss 5 (26 ) 23 (92 ) Foreign exchange contracts (principal amount – £14,449 million (2016 – £14,943 million)) 62 (47 ) 133 (99 ) Embedded and other derivatives 9 (1 ) — (3 ) Derivatives classified as held for trading under IAS 39 71 (48 ) 133 (102 ) Total derivative instruments 76 (74 ) 156 (194 ) Foreign exchange contracts classified as held for trading under IAS 39 The principal amount on foreign exchange contracts is the absolute total of outstanding positions at the balance sheet date. The Group’s foreign exchange contracts are for periods of 12 months or less. At 31 December 2017, the Group held outstanding foreign exchange contracts with a net asset fair value of £15 million (£62 million asset less £47 million liability). At 31 December 2016, the fair value was £34 million net asset (£133 million asset less £99 million liability). The overall decrease in the net asset fair value has been due to the weakening of Sterling against the Euro in 2017 and the strengthening of Sterling against the US Dollar which has impacted on the portion of the hedging portfolio that is not in a designated accounting hedge. Fair value movements are taken to the income statement in the period to offset the exchange gains and losses on the related underlying balances. Fair value hedges At 31 December 2017, the Group had no designated fair value hedges. Net investment hedges During the year, certain foreign exchange contracts were designated as net investment hedges in respect of the foreign currency translation risk arising on consolidation of the Group’s net investment in its European (Euro) foreign operations as shown in the table above. The carrying value of bonds on page 216 includes £4,315 million (2016 – £3,189 million) that are designated as hedging instruments in net investment hedges. Cash flow hedges During 2017, the Group entered into forward foreign exchange contracts which have been designated as cash flow hedges. These are hedging the foreign exchange exposure arising on Euro denominated coupon payments relating to notes issued under the Group’s European Medium Term Note programme and a number of highly probable forecast transactions denominated in US Dollars. In addition, the Group carries a balance in reserves that arose from pre-hedging (e) Offsetting of financial assets and liabilities Financial assets and liabilities are offset and the net amount reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts, and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. There are also arrangements that do not meet the criteria for offsetting but still allow for the related amounts to be offset in certain circumstances, such as bankruptcy or the termination of a contract. The following tables set out the financial assets and liabilities that are offset, or subject to enforceable master netting arrangements and other similar agreements but not offset, as at 31 December 2017 and 31 December 2016. The column ‘Net amount’ shows the impact on the Group’s balance sheet if all offset rights were exercised. At 31 December 2017 Gross Financial Net financial £m Related Net Financial assets Trade and other receivables 5,191 (1 ) 5,190 (31 ) 5,159 Derivative financial instruments 76 — 76 (64 ) 12 Financial liabilities Trade and other payables (20,130 ) 1 (20,129 ) 31 (20,098 ) Derivative financial instruments (74 ) — (74 ) 64 (10 ) At 31 December 2016 Gross Financial Net financial Related Net Financial assets Trade and other receivables 5,136 (1 ) 5,135 (29 ) 5,106 Derivative financial instruments 156 — 156 (117 ) 39 Financial liabilities Trade and other payables (11,042 ) 1 (11,041 ) 29 (11,012 ) Derivative financial instruments (194 ) — (194 ) 117 (77 ) Amounts which do not meet the criteria for offsetting on the balance sheet but could be settled net in certain circumstances principally relate to derivative transactions under ISDA (International Swaps and Derivatives Association) agreements where each party has the option to settle amounts on a net basis in the event of default of the other party. As there is presently not a legally enforceable right of offset, these amounts have not been offset in the balance sheet, but have been presented separately in the table above. (f) Debt interest rate repricing table The following table sets out the exposure of the Group to interest rates on debt, including commercial paper. The maturity analysis of fixed rate debt is stated by contractual maturity and of floating rate debt by interest rate repricing dates. For the purpose of this table, debt is defined as all classes of borrowings other than obligations under finance leases. 2017 2016 Total debt £m Total Floating and fixed rate debt less than one year (2,802 ) (4,106 ) Between one and two years (1,340 ) (2,216 ) Between two and three years (1,076 ) (1,277 ) Between three and four years (16 ) — Between four and five years (1,475 ) — Between five and ten years (3,664 ) (4,082 ) Greater than ten years (6,650 ) (7,045 ) Total (17,023 ) (18,726 ) Original issuance profile: Fixed rate interest (16,209 ) (17,342 ) Floating rate interest (765 ) (1,381 ) Total interest bearing (16,974 ) (18,723 ) Non-interest (49 ) (3 ) (17,023 ) (18,726 ) (g) Sensitivity analysis The tables below illustrate the estimated impact on the income statement and equity as a result of hypothetical market movements in foreign exchange and interest rates in relation to the Group’s financial instruments. The range of variables chosen for the sensitivity analysis reflects management’s view of changes which are reasonably possible over a one-year Foreign exchange sensitivity The Group operates internationally and is primarily exposed to foreign exchange risk in relation to Sterling against movements in US Dollar, Euro and Japanese Yen. Foreign exchange risk arises from the translation of financial assets and liabilities which are not in the functional currency of the entity that holds them. Based on the Group’s net financial assets and liabilities as at 31 December, a weakening and strengthening of Sterling against these currencies, with all other variables held constant, is illustrated in the tables below. The tables exclude financial instruments that expose the Group to foreign exchange risk where this risk is fully hedged with another financial instrument. 2017 2016 Income statement impact of non-functional Increase/(decrease) in £m Increase/(decrease) in 10 cent appreciation of the US Dollar 76 77 10 cent appreciation of the Euro (5 ) 18 10 yen appreciation of the Yen 9 1 2017 2016 Income statement impact of non-functional Increase/(decrease) in £m Increase/(decrease) in 10 cent depreciation of the US Dollar (66 ) (66 ) 10 cent depreciation of the Euro 4 (16 ) 10 yen depreciation of the Yen (8 ) (1 ) The equity impact, shown below, for foreign exchange sensitivity relates to derivative and non-derivative 2017 2016 Equity impact of non-functional Increase/(decrease) £m Increase/(decrease) 10 cent appreciation of the US Dollar 1 11 10 cent appreciation of the Euro (1,028 ) (795 ) 2017 2016 Equity impact of non-functional Increase/(decrease) £m Increase/(decrease) 10 cent depreciation of the US Dollar (1 ) (10 ) 10 cent depreciation of the Euro 861 670 The tables below present the Group’s sensitivity to a weakening and strengthening of Sterling against the relevant currency based on the composition of net debt as shown in Note 31 adjusted for the effects of foreign exchange derivatives that are not part of net debt but affect future foreign currency cash flows. 2017 2016 Impact of foreign exchange movements on net debt (Increase)/decrease in net debt £m (Increase)/decrease 10 cent appreciation of the US Dollar (637 ) (746 ) 10 cent appreciation of the Euro 197 190 10 yen appreciation of the Yen (4 ) (11 ) 2017 2016 Impact of foreign exchange movements on net debt (Increase)/decrease in net debt £m (Increase)/decrease 10 cent depreciation of the US Dollar 549 634 10 cent depreciation of the Euro (165 ) (160 ) 10 yen depreciation of the Yen 4 10 Interest rate sensitivity The Group is exposed to interest rate risk on its outstanding borrowings and investments where any changes in interest rates will affect future cash flows or the fair values of financial instruments. The majority of debt is issued at fixed interest rates and changes in the floating rates of interest do not significantly affect the Group’s net interest charge, although the majority of cash and liquid investments earn floating rates of interest. The table below hypothetically shows the Group’s sensitivity to changes in interest rates in relation to Sterling, US Dollar and Euro floating rate financial assets and liabilities. If the interest rates applicable to floating rate financial assets and liabilities were to have increased by 1% (100 basis points), and assuming other variables had remained constant, it is estimated that the Group’s finance income for 2017 would have increased by approximately £5 million (2016 – £3 million increase). A 1% (100 basis points) movement in interest rates is not deemed to have a material effect on equity. 2017 2016 Income statement impact of interest rate movements Increase/(decrease) £m Increase/(decrease) 1% (100 basis points) increase in Sterling interest rates 24 3 1% (100 basis points) increase in US Dollar interest rates (24 ) (3 ) 1% (100 basis points) increase in Euro interest rates 5 3 (h) Contractual cash flows for non-derivative The following tables provides an analysis of the anticipated contractual cash flows including interest payable for the Group’s non-derivative non-cancellable Obligations Finance charge on Trade payables and Interest on under finance obligations under other liabilities not Debt debt leases finance leases in net debt Total At 31 December 2017 £m £m £m £m £m £m Due in less than one year (2,802 ) (555 ) (23 ) (2 ) (21,521 ) (24,903 ) Between one and two years (1,344 ) (497 ) (27 ) (2 ) (853 ) (2,723 ) Between two and three years (1,078 ) (488 ) (8 ) (1 ) (813 ) (2,388 ) Between three and four years (16 ) (488 ) (2 ) (1 ) (784 ) (1,291 ) Between four and five years (1,483 ) (468 ) (1 ) (1 ) (752 ) (2,705 ) Between five and ten years (3,694 ) (2,018 ) (5 ) (5 ) (3,609 ) (9,331 ) Greater than ten years (6,720 ) (3,996 ) — — (1,471 ) (12,187 ) Gross contractual cash flows (17,137 ) (8,510 ) (66 ) (12 ) (29,803 ) (55,528 ) Finance charge on Trade payables and Obligations obligations other Interest on under finance under finance liabilities not Debt debt leases leases in net debt Total At 31 December 2016 £m £m £m £m £m £m Due in less than one year (4,108 ) (705 ) (23 ) (2 ) (11,621 ) (16,459 ) Between one and two years (2,218 ) (566 ) (22 ) (1 ) (8,784 ) (11,591 ) Between two and three years (1,282 ) (503 ) (12 ) — (961 ) (2,758 ) Between three and four years — (496 ) (7 ) — (786 ) (1,289 ) Between four and five years — (496 ) — — (705 ) (1,201 ) Between five and ten years (4,117 ) (2,122 ) — — (3,474 ) (9,713 ) Greater than ten years (7,124 ) (4,522 ) — — (3,135 ) (14,781 ) Gross contractual cash flows (18,849 ) (9,410 ) (64 ) (3 ) (29,466 ) (57,792 ) The increase in contractual cash flows for non-derivative Anticipated contractual cash flows for the repayment of debt and debt interest have decreased by £2.6 billion over the year due to a reduction in the issuance of commercial paper and favourable exchange rate movements on US Dollar denominated debt. The table below provides an analysis of the anticipated contractual cash flows |
Employee share schemes
Employee share schemes | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Employee share schemes | 43. Employee share schemes GSK operates several employee share schemes, including the Share Value Plan, whereby awards are granted to employees to acquire shares or ADS in GlaxoSmithKline plc at no cost after a three year vesting period and the Performance Share Plan, whereby awards are granted to employees to acquire shares or ADS in GlaxoSmithKline plc at no cost, subject to the achievement by the Group of specified performance targets. The granting of these restricted share awards has replaced the granting of options to employees as the cost of the schemes more readily equates to the potential gain to be made by the employee. The Group also operates savings related share option schemes, whereby options are granted to employees to acquire shares in GlaxoSmithKline plc at a discounted price. Grants of restricted share awards are normally exercisable at the end of the three year vesting or performance period. Awards are normally granted to employees to acquire shares or ADS in GlaxoSmithKline plc but in some circumstances may be settled in cash. Grants under savings-related share option schemes are normally exercisable after three years’ saving. In accordance with UK practice, the majority of options under the savings-related share option schemes are granted at a price 20% below the market price ruling at the date of grant. Options under historical share option schemes were granted at the market price ruling at the date of grant. The total charge for share-based incentive plans in 2017 was £347 million (2016 – £338 million; 2015 – £349 million). Of this amount, £276 million (2016 – £271 million; 2015 – £307 million) arose from the Share Value Plan. See Note 9, ‘Employee Costs’ for further details. GlaxoSmithKline share award schemes Share Value Plan Under the Share Value Plan, share awards are granted to certain employees at no cost. The awards vest after two and a half to three years and there are no performance criteria attached. The fair value of these awards is determined based on the closing share price on the day of grant, after deducting the expected future dividend yield of 4.8% (2016 – 4.5%; 2015 – 5.7%) over the duration of the award. Shares Weighted ADS Weighted Number of shares and ADS issuable Number (000) fair value Number (000) fair value At 1 January 2015 32,912 21,227 Awards granted 13,019 £ 11.57 7,198 $ 35.66 Awards exercised (11,476 ) (8,878 ) Awards cancelled (1,878 ) (2,027 ) At 31 December 2015 32,577 17,520 Awards granted 12,983 £ 14.97 6,589 $ 39.18 Awards exercised (11,198 ) (6,214 ) Awards cancelled (1,507 ) (812 ) At 31 December 2016 32,855 17,083 Awards granted 13,018 £ 13.68 6,610 $ 35.63 Awards exercised (10,596 ) (5,674 ) Awards cancelled (1,352 ) (627 ) At 31 December 2017 33,925 17,392 Performance Share Plan Under the Performance Share Plan, share awards are granted to Directors and senior executives at no cost. The percentage of each award that vests is based upon the performance of the Group over a defined measurement period with dividends reinvested during the same period. For awards granted from 2015, the performance conditions are based on three equally weighted measures over a three year performance period. These are adjusted free cash flow, TSR and R&D new product performance. The fair value of the awards is determined based on the closing share price on the day of grant. For TSR performance elements, this is adjusted by the likelihood of that condition being met, as assessed at the time of grant. During 2017, awards were made of 3.9 million shares at a weighted fair value of £11.09 and 1.0 million ADS at a weighted fair value of $32.85. At 31 December 2017, there were outstanding awards over 12.9 million shares and 3.2 million ADS. Share options and savings-related options For the purposes of valuing savings-related options to arrive at the share based payment charge, a Black-Scholes option pricing model has been used. The assumptions used in the model are as follows: 2017 Grant 2016 Grant 2015 Grant Risk-free interest rate 0.54 % 0.32 % 0.88 % Dividend yield 5.9 % 4.9 % 6.5 % Volatility 23 % 23 % 21 % Expected life 3 years 3 years 3 years Savings-related options grant price (including 20% discount) £ 10.86 £ 12.95 £ 10.14 Share option Share option Savings-related Options outstanding schemes – shares schemes – ADS share option schemes Weighted Weighted Weighted Number exercise Number exercise Number exercise 000 price 000 price 000 price At 31 December 2017 3,600 £ 11.86 3,277 $ 39.62 6,852 £ 10.77 Range of exercise prices on options outstanding at year end £ 11.47 – £ 12.21 $ 33.42 – $ 48.66 £ 10.13 – £ 12.95 Weighted average market price on exercise during year £ 16.07 $ 41.50 £ 14.28 Weighted average remaining contractual life 1.4 years 1.0 years 2.1 years Options over 2.0 million shares were granted during the year under the savings-related share option scheme at a weighted average fair value of £2.08. At 31 December 2017, 6.7 million of the savings-related share options were not exercisable. All of the other share options and ADS options are currently exercisable and all will expire if not exercised on or before 22 July 2020. There has been no change in the effective exercise price of any outstanding options during the year. Employee Share Ownership Plan Trusts The Group sponsors Employee Share Ownership Plan (ESOP) Trusts to acquire and hold shares in GlaxoSmithKline plc to satisfy awards made under employee incentive plans and options granted under employee share option schemes. The trustees of the ESOP Trusts purchase shares with finance provided by the Group by way of loans or contributions. In 2017, Treasury shares with a carrying value of £610 million were purchased by the US ESOP Trust to satisfy future awards. The costs of running the ESOP Trusts are charged to the income statement. Shares held by the ESOP Trusts are deducted from other reserves and amortised down to the value of proceeds, if any, receivable from employees on exercise by a transfer to retained earnings. The trustees have waived their rights to dividends on the shares held by the ESOP Trusts. Shares held for share award schemes 2017 2016 Number of shares (000) 66,558 42,571 £m £m Nominal value 17 11 Carrying value 399 285 Market value 880 665 Shares held for share option schemes 2017 2016 Number of shares (000) 139 139 £m £m Nominal value — — Carrying value 1 1 Market value 2 2 |
Principal Group companies
Principal Group companies | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Principal Group companies | 44. Principal Group companies The following represent the principal subsidiaries and their countries of incorporation of the Group at 31 December 2017. The equity share capital of these entities is wholly owned by the Group except where its percentage interest is shown otherwise. All companies are incorporated in their principal country of operation except where stated. England US Glaxo Group Limited Block Drug Company, Inc. (63.5%) Glaxo Operations UK Limited Corixa Corporation GlaxoSmithKline Capital plc GlaxoSmithKline Capital Inc. GlaxoSmithKline Consumer Healthcare Holdings Limited (63.5%) GlaxoSmithKline Consumer Healthcare, L.P. (55.9%) GlaxoSmithKline Consumer Healthcare (UK) Trading Limited (63.5%) GlaxoSmithKline Holdings (Americas) Inc. GlaxoSmithKline Export Limited GlaxoSmithKline LLC GlaxoSmithKline Finance plc Human Genome Sciences, Inc. GlaxoSmithKline Holdings Limited * GSK Consumer Health, Inc. (formerly Novartis Consumer Health, Inc.) (63.5%) GlaxoSmithKline Research & Development Limited S.R. One, Limited GlaxoSmithKline Services Unlimited * Stiefel Laboratories, Inc. GlaxoSmithKline UK Limited ViiV Healthcare Company (78.3%) Setfirst Limited SmithKline Beecham Limited ViiV Healthcare Limited (78.3%) ViiV Healthcare UK Limited (78.3%) Europe Others GlaxoSmithKline Biologicals SA (Belgium) GlaxoSmithKline Argentina S.A. (Argentina) GlaxoSmithKline Pharmaceuticals SA (Belgium) GlaxoSmithKline Australia Pty Ltd (Australia) GlaxoSmithKline Biologicals S.A.S. (France) GlaxoSmithKline Consumer Healthcare Australia Pty Ltd (Australia) (63.5%) GlaxoSmithKline Sante Grand Public SAS (France) (63.5%) GlaxoSmithKline Brasil Limitada (Brazil) Laboratoire GlaxoSmithKline (France) GlaxoSmithKline Consumer Healthcare Inc. (Canada) (63.5%) ViiV Healthcare SAS (France) (78.3%) GlaxoSmithKline Inc. (Canada) GlaxoSmithKline Consumer Healthcare GmbH & Co. KG ID Biomedical Corporation of Quebec (Canada) (Germany) (63.5%) GlaxoSmithKline Limited (China (Hong Kong)) GlaxoSmithKline GmbH & Co. KG (Germany) Sino-American Tianjin Smith Kline & French Laboratories Ltd (China) (34.9%) GSK Vaccines GmbH (Germany) GlaxoSmithKline Consumer Healthcare Limited (India) (72.5%) GlaxoSmithKline Consumer Healthcare S.p.A. (Italy) (63.5%) GlaxoSmithKline Pharmaceuticals Limited (India) (75%) GlaxoSmithKline S.p.A. (Italy) GlaxoSmithKline Consumer Healthcare Japan K.K. (Japan) (63.5%) GSK Vaccines S.r.l. (Italy) GlaxoSmithKline K.K. (Japan) GlaxoSmithKline B.V. (Netherlands) ViiV Healthcare Kabushiki Kaisha (Japan) (78.3%) GlaxoSmithKline Consumer Healthcare Sp.z.o.o. (Poland) (63.5%) GlaxoSmithKline Pakistan Limited (Pakistan) (82.6%) GlaxoSmithKline Pharmaceuticals S.A. (Poland) Glaxo Wellcome Manufacturing Pte Ltd. (Singapore) GSK Services Sp z o.o. (Poland) GlaxoSmithKline Korea Limited (Republic of Korea) GlaxoSmithKline Trading Services Limited (Republic of Ireland) (i) GlaxoSmithKline llaclari Sanayi ve Ticaret A.S. (Turkey) GlaxoSmithKline Healthcare AO (Russia) (63.5%) GlaxoSmithKline S.A. (Spain) Laboratorios ViiV Healthcare, S.L. (Spain) (78.3%) Novartis Consumer Health S.A. (Switzerland) (63.5%) (i) Exempt from the provisions of section 347 and 348 of the Companies Act 2014 (Ireland), in accordance with the exemptions noted in Section 357 of that Act. Further subsidiaries, as disclosed on pages 276 to 286, are exempt from these provisions as they are also consolidated in the group financial statements. * Directly held wholly owned subsidiary of GlaxoSmithKline plc. The subsidiaries and associates listed above principally affect the figures in the Group’s financial statements. Each of GlaxoSmithKline Capital Inc., GlaxoSmithKline Capital plc and GlaxoSmithKline LLC, is a wholly-owned finance subsidiary of the company, and the company has fully and unconditionally guaranteed the securities issued by each of GlaxoSmithKline Capital Inc., GlaxoSmithKline Capital plc and GlaxoSmithKline LLC. See pages 276 to 286 for a complete list of subsidiary undertakings, associates and joint ventures, which form part of these financial statements. |
Legal proceedings
Legal proceedings | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Legal proceedings | 45. Legal proceedings The Group is involved in significant legal and administrative proceedings, principally product liability, intellectual property, tax, anti-trust and governmental investigations, as well as related private litigation. The most significant of these matters, other than tax matters, are described below. The Group makes provision for these proceedings on a regular basis as summarised in Note 2, ‘Accounting principles and policies’ and Note 29, ‘Other provisions’. The Group may become involved in significant legal proceedings in respect of which it is not possible to make a reliable estimate of the expected financial effect, if any, that could result from ultimate resolution of the proceedings. In these cases, appropriate disclosures about such cases would be included in this note, but no provision would be made for the cases. With respect to each of the legal proceedings described below, other than those for which a provision has been made, the Group is unable to make a reliable estimate of the expected financial effect at this stage. The Group does not believe that information about the amount sought by the plaintiffs, if that is known, would be meaningful with respect to those legal proceedings. This is due to a number of factors, including, but not limited to, the stage of proceedings, the entitlement of parties to appeal a decision and clarity as to theories of liability, damages and governing law. Legal expenses incurred and provisions related to legal claims are charged to selling, general and administration costs. Provisions are made, after taking appropriate legal and other specialist advice, where an outflow of resources is considered probable and a reliable estimate can be made of the likely outcome of the dispute. For certain product liability claims, the Group will make a provision where there is sufficient history of claims made and settlements to enable management to make a reliable estimate of the provision required to cover unasserted claims. At 31 December 2017, the Group’s aggregate provision for legal and other disputes (not including tax matters described in Note 14, ‘Taxation’) was £186 million. The ultimate liability for legal claims may vary from the amounts provided and is dependent upon the outcome of litigation proceedings, investigations and possible settlement negotiations. The Group’s position could change over time, and, therefore, there can be no assurance that any losses that result from the outcome of any legal proceedings will not exceed by a material amount the amount of the provisions reported in the Group’s financial statements. If this were to happen, it could have a material adverse impact on the results of operations of the Group in the reporting period in which the judgements are incurred or the settlements entered into. Intellectual property Intellectual property claims include challenges to the validity and enforceability of the Group’s patents on various products or processes as well as assertions of non-infringement Flovent On 15 February 2017, the Group received a Paragraph IV certification from Teva for Flovent Flovent Flovent Flovent Bexsero Following its acquisition of the Novartis Vaccines business, the Group took over patent litigation originally filed by Novartis against Pfizer, Inc. (Pfizer) in the UK, Italy and the United States related to meningococcal B (Men B) vaccines. In various cases, Novartis had alleged that European patents owned by Pfizer were not infringed by the Group’s vaccine, Bexsero Trumenba, Trumenba Trumenba Dolutegravir /Tivicay/Triumeq In September and October, 2017, ViiV Healthcare received patent challenge letters under the Hatch-Waxman Act from Lupin, Mylan, Cipla and Dr. Reddy’s Labs for Triumeq Tivicay Triumeq Tivicay Triumeq On 7 February 2018, ViiV Healthcare filed patent infringement litigation against Gilead Sciences Inc. (Gilead) over bictegravir in the US District Court for the District of Delaware (US Patent No. 8,129,385) and the Canadian Federal Court (Canadian Patent No. 2,606,282). ViiV Healthcare alleges that Gilead’s triple combination HIV drug containing the HIV integrase inhibitor bictegravir infringes ViiV Healthcare’s patent covering dolutegravir and other compounds that include dolutegravir’s unique chemical scaffold. In both the US and Canada, ViiV Healthcare seeks financial redress rather than injunctive relief. No trial date has yet been set. Kivexa Between Q1 2017 and Q1 2018, ViiV Healthcare reached confidential agreements with each of Vale Pharmaceuticals, Lupin, Sandoz, STADA and Zentiva to settle various challenges to the validity of the Supplementary Protection Certificate (‘SPC’) for the patent covering the combination of lamivudine and abacavir for Kivexa DOC Generici filed an action in September 2016 in the Court of Rome seeking a declaration that the Italian SPC covering Kivexa In June 2017, Biogaran commenced proceedings in France seeking revocation of the French SPC covering Kivexa In Portugal, ViiV Healthcare initiated arbitration proceedings against Farmoz under the SPC covering Kivexa Kivexa In February 2017, Kyowa Pharmaceuticals filed a nullity action relating to Kivexa Lexiva The US patent covering Lexiva Lexiva Product liability Pre-clinical Notwithstanding these efforts, when drugs and vaccines are introduced into the marketplace, unanticipated safety issues may become, or be claimed by some to be, evident. The Group is currently a defendant in a number of product liability lawsuits related to the Group’s Pharmaceutical, Vaccine and Consumer Healthcare products. The Group has been able to make a reliable estimate of the expected financial effect of the matters discussed in this category and has included a provision, as appropriate, for the matters below in the provision for legal and other disputes. Matters for which the Group has made a provision are also noted in Note 29, ‘Other provisions. Avandia The Group has been named in product liability lawsuits on behalf of individuals asserting personal injury claims arising out of the use of Avandia As of February 2018, there are five remaining personal injury cases on appeal from summary judgement decisions in favour of the Group (one in federal court in Pennsylvania and four in California state court). There were four purported class actions in the US seeking economic damages on behalf of third party payers asserting claims under the Racketeer Influenced and Corrupt Organizations Act (RICO) and consumer protection laws. Two plaintiffs voluntarily dismissed their actions. On 7 December 2017, the MDL Court granted the Group’s motion for summary judgement on the two remaining plaintiffs’ claims. Plaintiffs have filed an appeal of the decision in the US Court of Appeals for the Third Circuit, and a briefing schedule has been set. In the Santa Clara County action, the Group filed a motion for summary judgement on the basis of pre-emption There are 13 purported class actions in Canada, two of which are active. In the two active cases, class certification hearings were held. In the Ontario action, the proceedings were adjourned. On 7 December 2017, the Nova Scotia court issued an Order certifying a nationwide class of all users of Avandia Seroxat/Paxil Paxil CR The Group has received numerous lawsuits and claims alleging that use of Paxil Paxil Paxil Paxil – Pregnancy The Group has reached agreements to settle the majority of the US claims relating to the use of Paxil The Singh action in Alberta, Canada, a proposed national class action, seeks to certify a class relating to birth defects generally. The Group is awaiting a hearing on the motion in Singh to certify the case as a class action. Another Canadian class action, Jensen, alleging claims of Paxil – Acts of violence As of February 2018, there were six pending claims or cases concerning allegations that patients who took paroxetine or Paxil – Discontinuation In the UK, a long-pending group action alleges that Seroxat Seroxat Zofran Plaintiffs allege that their children suffered birth defects as a result of the mothers’ ingestion of Zofran Zofran Zofran “off-label” The MDL cases are in discovery. The MDL continues with monthly status conferences where issues such as the sufficiency of the pleadings and the scope of discovery will be addressed. The Group continues to seek the dismissal of individual cases as appropriate. The Brown case pending in Oregon is in discovery and is scheduled for trial in October 2018. The remaining nine state court cases in the US, eight of which are in California, are still in their early days. The Group is also a defendant in four proposed class actions in Canada. There has been no significant activity in 2017 in the Canadian class actions. Sales and marketing and regulation The Group’s marketing and promotion of its Pharmaceutical and Vaccine products are the subject of certain governmental investigations and private lawsuits brought by litigants under various theories of law. The Group has been able to make a reliable estimate of the expected financial effect of the matters discussed in this category, and has included a provision for such matters in the provision for legal and other disputes, except as noted below. Matters for which the Group has made a provision are also noted in Note 29, ‘Other provisions’. SEC/DOJ and SFO Anti-corruption enquiries On 27 May 2014, the UK Serious Fraud Office (SFO) began a formal criminal investigation into the Group’s commercial operations in a number of countries, including China. The Group is co-operating non-government non-government On 30 September 2016, the Group reached a global resolution with the US Securities and Exchange Commission (SEC) regarding the SEC’s investigation under the US Foreign Corrupt Practices Act (FCPA) into the Group’s commercial practices in countries outside of the US, including China. As part of the resolution, the Group agreed to pay a civil penalty of $20 million to the US Government. The US Department of Justice (DOJ) confirmed that it had concluded its investigation into the Group’s commercial practices and would take no action against the Group. As part of the resolution with the SEC, the Group agreed to certain undertakings, including a period of self-monitoring and reporting. The Group’s obligations under that resolution continue through 30 September 2018. In the course of its current inquiry, the SFO has requested additional information from the Group regarding third party advisers engaged by the company in the course of the China Investigations. The SEC and DOJ are also investigating these matters following the Group’s reporting of the SFO’s inquiries. The Group is co-operating The Group is unable to make a reliable estimate of the expected financial effect of these investigations, and no provision has been made for them. US Vaccines subpoena On 25 February 2016, the Group received a subpoena from the US Attorney’s Office for the Southern District of New York requesting documents relating to the Group’s Vaccines business. The Group is responding to the subpoena. The Group is unable to make a reliable estimate of the expected financial effect of this matter, and no provision has been made for it. US subpoena relating to Imitrex On 7 March 2016, the Group received a subpoena from the US Attorney’s Office for the Southern District of New York requesting documents relating to the Group’s US contracts for Imitrex Amerge Average wholesale price The Attorney General in Illinois filed suit against the Group and a number of other pharmaceutical companies claiming damages and restitution due to average wholesale price (AWP) and/or wholesale acquisition cost (WAC) price reporting for pharmaceutical products covered by the state’s Medicaid programmes. The case alleges that the Group reported or caused to be reported false AWP and WAC prices, which, in turn, allegedly caused the state Medicaid agency to reimburse providers more money for covered medicines than the agency intended. The state has sought recovery on behalf of itself as payer and on behalf of in-state Cidra third-party payer litigation On 25 July 2013, a number of major US healthcare insurers filed suit against the Group in the Philadelphia, Pennsylvania County Court of Common Pleas seeking compensation for reimbursements they made for medicines manufactured at the Group’s former Cidra plant in Puerto Rico. These insurers claim that the Group knowingly and illegally marketed and sold adulterated drugs manufactured under conditions non-compliant Anti-trust/competition Certain governmental actions and private lawsuits have been brought against the Group alleging violation of competition or anti-trust laws. The Group has been able to make a reliable estimate of the expected financial effect of the matters discussed in this category and has included a provision for such matters in the provision for legal and other disputes, except as noted below. Matters for which the Group has made a provision are also noted in Note 29, ‘Other provisions’. UK Competition and Markets Authority investigation On 12 February 2016, the UK Competition and Markets Authority (CMA) issued a decision fining the Group and two other pharmaceutical companies for infringement of the Competition Act. The CMA imposed a fine of £37.6 million on the Group, as well as fines totaling £7.4 million against the other companies. This relates to agreements to settle patent disputes between the Group and potential suppliers of generic paroxetine formulations, entered between 2001 and 2003. The Group terminated the agreements at issue in 2004. The Group believes it has strong grounds for its appeal of the CMA’s finding to the Competition Appeal Tribunal (CAT) in order to overturn the fine or substantially reduce it. The appeal concluded in April 2017. The CAT delivered its initial judgement on the appeal on 8 March 2018 referring all the principle points at issue to the Court of Justice of the EU for a preliminary ruling. The matter will then return to the CAT for final judgement. No provision has been made for this matter. Lamictal Purported classes of direct and indirect purchasers filed suit in the US District Court for the District of New Jersey alleging that the Group and Teva Pharmaceuticals unlawfully conspired to delay generic competition for Lamictal On 26 June 2015, the Court of Appeals reversed the trial court’s decision to dismiss the case and remanded the action back to the trial court. On 18 May 2016, the trial court denied the indirect purchaser class plaintiffs’ motion for reconsideration. As a result, the indirect purchaser class representatives have agreed to a settlement to exit the case and resolve their remaining claims. Terms of the settlement are confidential. The case will continue to move forward with document production and witness depositions with regard to the claims of the direct purchasers. Wellbutrin XL Plaintiffs claimed anti-trust injury related to allegedly sham patent litigation filed by Biovail against generic companies pursuing ANDAs for generic Wellbutrin XL Commercial and corporate The Group is a defendant in certain cases which allege violation of US federal securities and ERISA laws. The Group has been able to make a reliable estimate of the expected financial effect of the matters discussed in this category and has included a provision for such matters in the provision for legal and other disputes. Matters for which the Group has made a provision are also noted in Note 29, ‘Other provisions’. Securities/ERISA class actions – Stiefel On 12 December 2011, the US Securities and Exchange Commission (SEC) filed a formal complaint against Stiefel Laboratories, Inc. and Charles Stiefel in the US District Court for the District of Florida alleging that Stiefel and its principals violated federal securities laws by inducing Stiefel employees to sell their shares in the employee stock plan back to the company at a greatly undervalued price and without disclosing to employees that the company was about to be sold to the Group. The case was stayed while several private actions brought by former Stiefel employees proceeded through the courts, but was returned to active status in early summer 2015. It is unclear when the case ultimately will be scheduled for trial. In addition to the SEC case, one private matter (the “Martinolich” case) remains. It is also pending in federal district court in Florida, but has been stayed pending the trial of the SEC matter. The allegations in the Martinolich case largely track those in the SEC matter: plaintiff, a former Stiefel employee, alleges that Stiefel and its officers and directors violated the US Employee Retirement Income Security Act (ERISA) and federal and state securities laws by inducing Stiefel employees to sell their shares in the employee stock plan back to Stiefel at a greatly undervalued price and without disclosing to employees that Stiefel was about to be sold to the Group. Environmental matters The Group has been notified of its potential responsibility relating to past operations and its past waste disposal practices at certain sites, primarily in the US. Some of these matters are the subject of litigation, including proceedings initiated by the US federal or state governments for waste disposal, site remediation costs and tort actions brought by private parties. The Group has been advised that it may be a responsible party at approximately 19 sites, of which 10 appear on the National Priority List created by the Comprehensive Environmental Response Compensation and Liability Act (Superfund). These proceedings seek to require the operators of hazardous waste facilities, transporters of waste to the sites and generators of hazardous waste disposed of at the sites to clean up the sites or to reimburse the US Government for cleanup costs. In most instances, the Group is involved as an alleged generator of hazardous waste. Although Superfund provides that the defendants are jointly and severally liable for cleanup costs, these proceedings are frequently resolved on the basis of the nature and quantity of waste disposed of by the generator at the site. The Group’s proportionate liability for cleanup costs has been substantially determined for 18 of the sites referred to above. The Group’s potential liability varies greatly from site to site. The the cost of investigation, study and remediation at such sites could, over time, be significant. The Group has made a provision for these matters, as noted in Note 29, ‘Other provisions’. |
Presentation of the financial52
Presentation of the financial statements (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Implementation of new accounting standards and interpretations | Implementation of new accounting standards and interpretations An agenda decision by the IFRS Interpretations Committee in September 2017 clarified that charges for interest on tax should be reported within finance expense and certain penalties on tax settlements should be reported within administrative expenses. Previously GSK had reported these charges within the overall tax charge in the income statement or other comprehensive income, as appropriate. GSK has adopted the revised basis of reporting in 2017 and, as a result of a number of settlements during the year, has recorded credits for interest on tax for 2017 of £24 million in finance expense. There were no material charges for penalties on settlements during 2017 that required adjustment. Accrued interest payable on tax at 31 December 2017 was £52 million, and this is included within trade and other payables on the Group balance sheet. The impact on prior years was not material and so prior year amounts have not been restated. |
Consolidation | Consolidation The consolidated financial statements include: • the assets and liabilities, and the results and cash flows, of the company and its subsidiaries, including ESOP Trusts • the Group’s share of the results and net assets of associates and joint ventures • the Group’s share of assets, liabilities, revenue and expenses of joint operations. The financial statements of entities consolidated are made up to 31 December each year. Entities over which the Group has the power to direct the relevant activities so as to affect the returns to the Group, generally through control over the financial and operating policies, are accounted for as subsidiaries. Where the Group has the ability to exercise joint control over, and rights to the net assets of, entities, the entities are accounted for as joint ventures. Where the Group has the ability to exercise joint control over an arrangement, but has rights to specified assets and obligations for specified liabilities of the arrangement, the arrangement is accounted for as a joint operation. Where the Group has the ability to exercise significant influence over entities, they are accounted for as associates. The results and assets and liabilities of associates and joint ventures are incorporated into the consolidated financial statements using the equity method of accounting. The Group’s rights to assets, liabilities, revenue and expenses of joint operations are included in the consolidated financial statements in accordance with those rights and obligations. Interests acquired in entities are consolidated from the date the Group acquires control and interests sold are de-consolidated Transactions and balances between subsidiaries are eliminated and no profit before tax is taken on sales between subsidiaries until the products are sold to customers outside the Group. The relevant proportion of profits on transactions with joint ventures, joint operations and associates is also deferred until the products are sold to third parties. Transactions with non-controlling |
Business combinations | Business combinations Business combinations are accounted for using the acquisition accounting method. Identifiable assets, liabilities and contingent liabilities acquired are measured at fair value at acquisition date. The consideration transferred is measured at fair value and includes the fair value of any contingent consideration. Where the consideration transferred, together with the non-controlling Goodwill is capitalised as a separate item in the case of subsidiaries and as part of the cost of investment in the case of joint ventures and associates. Goodwill is denominated in the currency of the operation acquired. Where the cost of acquisition is below the fair value of the net assets acquired, the difference is recognised directly in the income statement. Where not all of the equity of a subsidiary is acquired the non-controlling non-controlling case-by-case |
Foreign currency translation | Foreign currency translation Foreign currency transactions are booked in the functional currency of the Group company at the exchange rate ruling on the date of transaction. Foreign currency monetary assets and liabilities are retranslated into the functional currency at rates of exchange ruling at the balance sheet date. Exchange differences are included in the income statement. On consolidation, assets and liabilities, including related goodwill, of overseas subsidiaries, associates and joint ventures, are translated into Sterling at rates of exchange ruling at the balance sheet date. The results and cash flows of overseas subsidiaries, associates and joint ventures are translated into Sterling using average rates of exchange. Exchange adjustments arising when the opening net assets and the profits for the year retained by overseas subsidiaries, associates and joint ventures are translated into Sterling, less exchange differences arising on related foreign currency borrowings which hedge the Group’s net investment in these operations, are taken to a separate component of equity. When translating into Sterling the assets, liabilities, results and cash flows of overseas subsidiaries, associates and joint ventures which are reported in currencies of hyper-inflationary |
Revenue | Revenue Revenue is recognised in the income statement when goods or services are supplied or made available to external customers against orders received, title and risk of loss is passed to the customer, reliable estimates can be made of relevant deductions and all relevant obligations have been fulfilled, such that the earnings process is regarded as being complete. Turnover represents net invoice value after the deduction of discounts and allowances given and accruals for estimated future rebates and returns. The methodology and assumptions used to estimate rebates and returns are monitored and adjusted regularly in the light of contractual and legal obligations, historical trends, past experience and projected market conditions. Market conditions are evaluated using wholesaler and other third-party analyses, market research data and internally generated information. Value added tax and other sales taxes are excluded from revenue. Where the Group co-promotes co-promotion co-promotion co-promotion Royalty income is recognised on an accruals basis in accordance with the terms of the relevant licensing agreements. |
Expenditure | Expenditure Expenditure is recognised in respect of goods and services received when supplied in accordance with contractual terms. Provision is made when an obligation exists for a future liability in respect of a past event and where the amount of the obligation can be reliably estimated. Manufacturing start-up Restructuring costs are recognised and provided for, where appropriate, in respect of the direct expenditure of a business reorganisation where the plans are sufficiently detailed and well advanced, and where appropriate communication to those affected has been undertaken. |
Research and development | Research and development Research and development expenditure is charged to the income statement in the period in which it is incurred. Development expenditure is capitalised when the criteria for recognising an asset are met, usually when a regulatory filing has been made in a major market and approval is considered highly probable. Property, plant and equipment used for research and development is capitalised and depreciated in accordance with the Group’s policy. |
Environmental expenditure | Environmental expenditure Environmental expenditure related to existing conditions resulting from past or current operations and from which no current or future benefit is discernible is charged to the income statement. The Group recognises its liability on a site-by-site clean-up |
Legal and other disputes | Legal and other disputes Provision is made for the anticipated settlement costs of legal or other disputes against the Group where an outflow of resources is considered probable and a reliable estimate can be made of the likely outcome. In addition, provision is made for legal or other expenses arising from claims received or other disputes. In respect of product liability claims related to certain products, there is sufficient history of claims made and settlements to enable management to make a reliable estimate of the provision required to cover unasserted claims. In certain cases, an incurred but not reported (IBNR) actuarial technique is used to determine this estimate. The Group may become involved in legal proceedings, in respect of which it is not possible to make a reliable estimate of the expected financial effect, if any, that could result from ultimate resolution of the proceedings. In these cases, appropriate disclosure about such cases would be included but no provision would be made. Costs associated with claims made by the Group against third parties are charged to the income statement as they are incurred. |
Pensions and other post-employment benefits | Pensions and other post-employment benefits The costs of providing pensions under defined benefit schemes are calculated using the projected unit credit method and spread over the period during which benefit is expected to be derived from the employees’ services, consistent with the advice of qualified actuaries. Pension obligations are measured as the present value of estimated future cash flows discounted at rates reflecting the yields of high quality corporate bonds. Pension scheme assets are measured at fair value at the balance sheet date. The costs of other post-employment liabilities are calculated in a similar way to defined benefit pension schemes and spread over the period during which benefit is expected to be derived from the employees’ services, in accordance with the advice of qualified actuaries. Actuarial gains and losses and the effect of changes in actuarial assumptions, are recognised in the statement of comprehensive income in the year in which they arise. The Group’s contributions to defined contribution plans are charged to the income statement as incurred. |
Employee share plans | Employee share plans Incentives in the form of shares are provided to employees under share option and share award schemes. The fair values of these options and awards are calculated at their grant dates using a Black-Scholes option pricing model and charged to the income statement over the relevant vesting periods. The Group provides finance to ESOP Trusts to purchase company shares to meet the obligation to provide shares when employees exercise their options or awards. Costs of running the ESOP Trusts are charged to the income statement. Shares held by the ESOP Trusts are deducted from other reserves. A transfer is made between other reserves and retained earnings over the vesting periods of the related share options or awards to reflect the ultimate proceeds receivable from employees on exercise. |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment (PP&E) is stated at the cost of purchase or construction, less provisions for depreciation and impairment. Financing costs are capitalised within the cost of qualifying assets in construction. Depreciation is calculated to write off the cost less residual value of PP&E, excluding freehold land, using the straight-line basis over the expected useful life. Residual values and lives are reviewed, and where appropriate adjusted annually. The normal expected useful lives of the major categories of PP&E are: Freehold buildings 20 to 50 years Leasehold land and buildings Lease term or 20 to 50 years Plant and machinery 10 to 20 years Equipment and vehicles 3 to 10 years On disposal of PP&E, the cost and related accumulated depreciation and impairments are removed from the financial statements and the net amount, less any proceeds, is taken to the income statement. |
Leases | Leases Leasing agreements which transfer to the Group substantially all the benefits and risks of ownership of an asset are treated as finance leases, as if the asset had been purchased outright. The assets are included in PP&E or computer software and the capital elements of the leasing commitments are shown as obligations under finance leases. Assets held under finance leases are depreciated on a basis consistent with similar owned assets or the lease term, if shorter. The interest element of the lease rental is included in the income statement. All other leases are operating leases and the rental costs are charged to the income statement on a straight-line basis over the lease term. |
Goodwill | Goodwill Goodwill is stated at cost less impairments. Goodwill is deemed to have an indefinite useful life and is tested for impairment at least annually. Where the fair value of the interest acquired in an entity’s assets, liabilities and contingent liabilities exceeds the consideration paid, this excess is recognised immediately as a gain in the income statement. |
Other intangible assets | Other intangible assets Intangible assets are stated at cost less provisions for amortisation and impairments. Licences, patents, know-how non-exclusivity. know-how Acquired brands are valued independently as part of the fair value of businesses acquired from third parties where the brand has a value which is substantial and long term and where the brands either are contractual or legal in nature or can be sold separately from the rest of the businesses acquired. Brands are amortised over their estimated useful lives of up to 20 years, except where it is considered that the useful economic life is indefinite. The costs of acquiring and developing computer software for internal use and internet sites for external use are capitalised as intangible fixed assets where the software or site supports a significant business system and the expenditure leads to the creation of a durable asset. ERP systems software is amortised over seven to ten years and other computer software over three to five years. |
Impairment of non-current assets | Impairment of non-current The carrying values of all non-current Impairments of goodwill are not reversed. Impairment losses on other non-current |
Investments in associates, joint ventures and joint operations | Investments in associates, joint ventures and joint operations Investments in associates and joint ventures are carried in the consolidated balance sheet at the Group’s share of their net assets at date of acquisition and of their post-acquisition retained profits or losses together with any goodwill arising on the acquisition. The Group recognises its rights to assets, liabilities, revenue and expenses of joint operations. |
Available-for-sale investments | Available-for-sale Liquid investments and other investments are classified as available-for-sale available-for-sale On disposal or impairment of the investments, any gains and losses that have been deferred in other comprehensive income are reclassified to the income statement. Dividends on equity investments are recognised in the income statement when the Group’s right to receive payment is established. Equity investments are recorded in non-current Purchases and sales of equity investments are accounted for on the trade date and purchases and sales of other available-for-sale |
Inventories | Inventories Inventories are included in the financial statements at the lower of cost (including raw materials, direct labour, other direct costs and related production overheads) and net realisable value. Cost is generally determined on a first in, first out basis. Pre-launch |
Trade receivables | Trade receivables Trade receivables are carried at original invoice amount less any provisions for doubtful debts. Provisions are made where there is evidence of a risk of non-payment, Subsequent recoveries of amounts previously provided for are credited to the income statement. Long-term receivables are discounted where the effect is material. |
Borrowings | Borrowings All borrowings are initially recorded at the amount of proceeds received, net of transaction costs. Borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the income statement over the period of the relevant borrowing. |
Taxation | Taxation Current tax is provided at the amounts expected to be paid applying tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is provided in full, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the temporary differences can be utilised. Deferred tax is provided on temporary differences arising on investments in subsidiaries, associates and joint ventures, except where the timing of the reversal of the temporary difference can be controlled and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is provided using rates of tax that have been enacted or substantively enacted by the balance sheet date. |
Derivative financial instruments and hedging | Derivative financial instruments and hedging Derivative financial instruments are used to manage exposure to market risks. The principal derivative instruments used by GSK are foreign currency swaps, interest rate swaps, foreign exchange forward contracts and options. The Group does not hold or issue derivative financial instruments for trading or speculative purposes. Derivative financial instruments are classified as held-for-trading Changes in the fair value of derivatives designated as cash flow hedges are recognised in other comprehensive income to the extent that the hedges are effective. Ineffective portions are recognised in profit or loss immediately. Amounts deferred in other comprehensive income are reclassified to the income statement when the hedged item affects profit or loss. Net investment hedges are accounted for in a similar way to cash flow hedges. Changes in the fair value of derivatives designated as fair value hedges are recorded in the income statement, together with the changes in the fair value of the hedged asset or liability. Changes in the fair value of any derivative instruments that do not qualify for hedge accounting are recognised immediately in the income statement. |
Discounting | Discounting Where the time value of money is material, balances are discounted to current values using appropriate discount rates. The unwinding of the discounts is recorded in finance income and finance expense. |
Accounting principles and pol53
Accounting principles and policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Expected Useful Lives of Property Plant and Equipment | The normal expected useful lives of the major categories of PP&E are: Freehold buildings 20 to 50 years Leasehold land and buildings Lease term or 20 to 50 years Plant and machinery 10 to 20 years Equipment and vehicles 3 to 10 years |
Exchange rates (Tables)
Exchange rates (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Currencies Translations and Relevant Exchange Rates | The currencies which most influence these translations and the relevant exchange rates were as follows: 2017 2016 2015 Average rates: US$/£ 1.30 1.36 1.53 Euro/£ 1.15 1.23 1.37 Yen/£ 145 149 185 Period end rates: US$/£ 1.35 1.24 1.47 Euro/£ 1.13 1.17 1.36 Yen/£ 152 144 177 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Turnover by Segment | 2017 2016 2015 Turnover by segment £m £m £m Pharmaceuticals 17,276 16,104 14,157 Vaccines 5,160 4,592 3,656 Consumer Healthcare 7,750 7,193 6,038 Segment turnover 30,186 27,889 23,851 Corporate and other unallocated turnover – – 72 30,186 27,889 23,923 |
Segment Profit and Operating Profit | 2017 2016 2015 Segment profit £m £m £m Pharmaceuticals 8,667 7,976 6,449 Pharmaceuticals R&D (2,740 ) (2,488 ) (2,168 ) Pharmaceuticals, including R&D 5,927 5,488 4,281 Vaccines 1,644 1,429 958 Consumer Healthcare 1,373 1,116 684 Segment profit 8,944 8,033 5,923 Corporate and other unallocated costs (376 ) (362 ) (264 ) Other reconciling items between segment profit and operating profit (4,481 ) (5,073 ) 4,663 Operating profit 4,087 2,598 10,322 Finance income 65 72 104 Finance costs (734 ) (736 ) (757 ) Profit on disposal of interest in associates 94 – 843 Share of after tax profits of associates and joint ventures 13 5 14 Profit before taxation 3,525 1,939 10,526 Taxation (1,356 ) (877 ) (2,154 ) Profit after taxation for the year 2,169 1,062 8,372 Depreciation and amortisation by segment 2017 2016 2015 Pharmaceuticals 551 440 303 Pharmaceuticals R&D 96 211 238 Pharmaceuticals, including R&D 647 651 541 Vaccines 405 315 253 Consumer Healthcare 135 126 140 Segment depreciation and amortisation 1,187 1,092 934 Corporate and other unallocated depreciation and amortisation 144 94 145 Other reconciling items between segment depreciation and amortisation and total depreciation and amortisation 591 588 551 Total depreciation and amortisation 1,922 1,774 1,630 PP&E, intangible asset and goodwill impairment by segment 2017 2016 2015 Pharmaceuticals 38 29 57 Pharmaceuticals R&D 10 88 105 Pharmaceuticals, including R&D 48 117 162 Vaccines 13 34 17 Consumer Healthcare 10 46 5 Segment impairment 71 197 184 Corporate and other unallocated impairment 3 24 18 Other reconciling items between segment impairment and total impairment 995 68 385 Total impairment 1,069 289 587 PP&E and intangible asset impairment reversals by segment 2017 2016 2015 Pharmaceuticals (13 ) (15 ) (8 ) Pharmaceuticals R&D (2 ) (10 ) (10 ) Pharmaceuticals, including R&D (15 ) (25 ) (18 ) Vaccines – (19 ) – Consumer Healthcare (1 ) (8 ) (4 ) Segment impairment reversals (16 ) (52 ) (22 ) Corporate and other unallocated impairment reversals – (26 ) (2 ) Other reconciling items between segment impairment reversals and total impairment reversals (36 ) (9 ) – Total impairment reversals (52 ) (87 ) (24 ) 2017 2016 Net assets by segment £m £m Pharmaceuticals 2,017 3,225 Pharmaceuticals R&D 522 572 Pharmaceuticals, including R&D 2,539 3,797 Vaccines 9,707 9,676 Consumer Healthcare 2,003 3,721 Segment net operating assets 14,249 17,194 Corporate and other unallocated net operating assets 868 (228 ) Net operating assets 15,117 16,966 Net debt (13,178 ) (13,804 ) Investments in associates and joint ventures 183 263 Derivative financial instruments 2 (38 ) Current and deferred taxation 1,252 1,361 Assets held for sale 113 215 Net assets 3,489 4,963 |
Summary of Geographical Information | Geographical information The UK is regarded as being the Group’s country of domicile. Turnover by location of customer 2017 £m 2016 2015 UK 940 1,056 1,102 US 11,263 10,197 8,222 International 17,983 16,636 14,599 External turnover 30,186 27,889 23,923 2017 2016 Non-current £m £m UK 6,824 7,060 US 6,841 7,802 International 20,901 21,234 Non-current 34,566 36,096 |
Pharmaceuticals [member] | |
Turnover by Product & Service | 2017 2016 2015 Pharmaceuticals turnover by therapeutic area £m £m £m Respiratory 6,991 6,510 5,741 HIV 4,350 3,556 2,322 Immuno-inflammation 377 340 263 Established Pharmaceuticals 5,558 5,698 5,831 17,276 16,104 14,157 |
Consumer Healthcare [member] | |
Turnover by Product & Service | 2017 2016 2015 Consumer Healthcare turnover by category £m £m £m Wellness 4,001 3,726 2,970 Oral care 2,466 2,223 1,875 Nutrition 680 674 684 Skin health 603 570 509 7,750 7,193 6,038 |
Vaccines [member] | |
Turnover by Product & Service | 2017 2016 2015 Vaccines turnover by category £m £m £m Meningitis 890 662 326 Influenza 488 414 268 Shingles 22 – – Established Vaccines 3,760 3,516 3,062 5,160 4,592 3,656 |
Other operating income_(expen56
Other operating income/(expense) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary Information about Other Operating Income Expense | 2017 2016 2015 £m £m £m Impairment of equity investments (30 ) (47 ) (263 ) Disposal of equity investments 37 254 342 Disposal of businesses and assets 195 283 9,661 Fair value remeasurements on contingent consideration recognised in business combinations (1,012 ) (2,205 ) (1,965 ) Remeasurement of ViiV Healthcare put option liabilities and preferential dividends 13 (577 ) – Remeasurement of Consumer Healthcare put option liability (1,186 ) (1,133 ) (83 ) Fair value adjustments on derivative financial instruments 9 (3 ) 2 Other income/(expense) 9 23 21 (1,965 ) (3,405 ) 7,715 |
Operating profit (Tables)
Operating profit (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Information About Profit Loss | 2017 2016 2015 The following items have been included in operating profit: £m £m £m Employee costs (Note 9) 9,122 8,212 8,030 Advertising 1,351 1,265 1,059 Distribution costs 405 395 376 Depreciation of property, plant and equipment 988 978 892 Impairment of property, plant and equipment, net of reversals 327 180 346 Amortisation of intangible assets 934 796 738 Impairment of intangible assets, net of reversals 690 22 217 Net foreign exchange losses 215 53 47 Inventories: Cost of inventories included in cost of sales 8,526 8,093 7,602 Write-down of inventories 701 533 488 Reversal of prior year write-down of inventories (352 ) (145 ) (65 ) Operating lease rentals: Minimum lease payments 110 91 101 Contingent rents 4 4 8 Sub-lease 5 4 7 Fees payable to the company’s auditor and its associates in relation to the Group (see below) 29.2 29.7 33.1 |
Summary of Auditors Remuneration | Fees payable to the company’s auditor and its associates: 2017 2016 2015 Audit of parent company and consolidated financial statements 7.0 5.8 7.5 Audit of the company’s subsidiaries 16.2 16.4 16.3 Attestation under s.404 of Sarbanes-Oxley Act 2002 4.5 4.4 4.3 Audit and audit-related services 27.7 26.6 28.1 Taxation compliance 0.2 0.2 0.3 Taxation advice 0.1 1.8 3.2 Other assurance services 1.0 0.3 1.1 All other services 0.2 0.8 0.4 29.2 29.7 33.1 |
Pension schemes [member] | |
Summary of Auditors Remuneration | In addition to the above, fees paid in respect of the GSK pension schemes were: 2017 2016 2015 Audit 0.3 0.4 0.3 Other services 0.1 — — |
Employee costs (Tables)
Employee costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Employee Costs | 2017 2016 2015 £m £m £m Wages and salaries 7,116 6,391 6,132 Social security costs 802 733 633 Pension and other post-employment costs, including augmentations (Note 28) 616 541 467 Cost of share-based incentive plans 347 338 349 Severance and other costs from integration and restructuring activities 241 209 449 9,122 8,212 8,030 |
Disclosure of Average Monthly Number of Persons Employed by the Group (Including Directors) | The average monthly number of persons employed by the Group (including Directors) during the year was: 2017 2016 2015 Manufacturing 38,632 38,611 37,025 Selling, general and administration 49,141 49,961 52,121 Research and development 11,576 11,255 12,046 99,349 99,827 101,192 |
Summary of Compensation of the Directors and Senior Management | The compensation of the Directors and Senior Management (members of the CET) in aggregate, was as follows: 2017 2016 2015 Wages and salaries 26 25 23 Social security costs 4 4 2 Pension and other post-employment costs 3 2 3 Cost of share-based incentive plans 22 15 18 55 46 46 |
Pensions and other post-emplo59
Pensions and other post-employment benefits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Analysis of Defined Benefit Pension Obligation | 2017 2016 2015 Pension and other post-employment costs £m £m £m UK pension schemes 198 205 177 US pension schemes 113 106 96 Other overseas pension schemes 218 140 135 Unfunded post-retirement healthcare schemes 87 90 59 616 541 467 Analysed as: Funded defined benefit/hybrid pension schemes 335 304 291 Unfunded defined benefit pension schemes 55 43 36 Unfunded post-retirement healthcare schemes 87 90 59 Defined benefit schemes 477 437 386 Defined contribution pension schemes 139 104 81 616 541 467 |
Summary of Average Life Expectancy Assumed | The average life expectancy assumed now for an individual at the age of 60 and projected to apply in 2037 for an individual then at the age of 60 is as follows: UK US Male Female Male Female Current 27.5 29.5 26.9 28.6 Projected for 2037 29.1 31.1 28.6 30.3 |
Summary of Financial Assumptions in Assessing Defined Benefit Liabilities | The Group has applied the following financial assumptions in assessing the defined benefit liabilities: UK US Rest of World 2017 2016 2015 2017 2016 2015 2017 2016 2015 Rate of increase of future earnings 2.00 2.00 2.00 4.00 4.00 4.00 2.80 2.70 2.70 Discount rate 2.50 2.70 3.80 3.60 3.90 4.20 1.60 1.60 2.20 Expected pension increases 3.20 3.20 3.10 n/a n/a n/a 2.20 2.10 2.00 Cash balance credit/conversion rate n/a n/a n/a 2.90 3.20 3.20 0.30 0.30 0.60 Inflation rate 3.20 3.20 3.10 2.25 2.25 2.25 1.70 1.50 1.40 |
Summary of Amounts Recorded in Income Statement and Statement of Comprehensive Income Related to Defined Benefit Pension and Post-retirement Healthcare Schemes | The amounts recorded in the income statement and statement of comprehensive income for the three years ended 31 December 2017 in relation to the defined benefit pension and post-retirement healthcare schemes were as follows: Pensions Post-retirement 2017 UK US Rest of World Group Group £m Amounts charged to operating profit Current service cost 79 70 131 280 30 Past service cost 37 — — 37 (2 ) Net interest cost 7 31 16 54 59 Expenses 7 12 — 19 — 130 113 147 390 87 Remeasurement gains/(losses) recorded in the statement of comprehensive income 259 240 (14 ) 485 64 Pensions Post-retirement 2016 UK US Rest of World Group Group Amounts charged to operating profit Current service cost 70 66 110 246 31 Past service cost 52 1 1 54 3 Net interest cost 9 27 20 56 56 Gains from settlements — — (28 ) (28 ) — Expenses 7 12 — 19 — 138 106 103 347 90 Remeasurement losses recorded in the statement of comprehensive income (165 ) (27 ) (224 ) (416 ) (59 ) Pensions Post-retirement 2015 UK US Rest of World Group Group £m Amounts charged to operating profit Current service cost 77 67 110 254 22 Past service cost/(credit) 25 2 (10 ) 17 (8 ) Net interest cost 14 22 13 49 52 Losses/(gains) from settlements — 1 (9 ) (8 ) (7 ) Expenses 7 4 4 15 — 123 96 108 327 59 Remeasurement gains/(losses) recorded in the statement of comprehensive income 82 (30 ) 147 199 62 |
Summary of Balance Sheet Presentation of Group Defined Benefit Pension Schemes and Other Post-retirement Benefits | A summarised balance sheet presentation of the Group defined benefit pension schemes and other post-retirement benefits is set out in the table below: 2017 2016 2015 £m £m £m Recognised in Other non-current Pension schemes in surplus 538 313 258 Recognised in Pensions and other post-employment benefits: Pension schemes in deficit (2,043 ) (2,397 ) (1,842 ) Post-retirement benefits (1,496 ) (1,693 ) (1,387 ) (3,539 ) (4,090 ) (3,229 ) |
Summary of Fair Values of Assets and Liabilities of UK and US Defined Benefit Pension Schemes Together with Aggregated Data for Other Defined Benefit Pension Schemes in Group | The fair values of the assets and liabilities of the UK and US defined benefit pension schemes, together with aggregated data for other defined benefit pension schemes in the Group are as follows: UK US Rest of World Group At 31 December 2017 £m £m £m £m Equities: – listed 4,902 1,448 544 6,894 – unlisted — — 13 13 Multi-asset funds 2,517 — — 2,517 Property: – unlisted 352 209 32 593 Corporate bonds: – listed 297 820 103 1,220 – unlisted 326 — 20 346 Government bonds: – listed 5,127 239 762 6,128 Insurance contracts 849 — 707 1,556 Other assets (1,216 ) 158 71 (987 ) Fair value of assets 13,154 2,874 2,252 18,280 Present value of scheme obligations (13,101 ) (3,445 ) (3,239 ) (19,785 ) Net surplus/(obligation) 53 (571 ) (987 ) (1,505 ) Included in Other non-current 470 — 68 538 Included in Pensions and other post-employment benefits (417 ) (571 ) (1,055 ) (2,043 ) 53 (571 ) (987 ) (1,505 ) Actual return on plan assets 893 394 82 1,369 The multi-asset funds comprise investments in pooled investment vehicles that are invested across a range of asset classes, increasing diversification within the growth portfolio. The index-linked gilts held as part of the UK repo programme are included in government bonds. The related loan is included within ‘Other assets’ at a value of £(773) million (2016 – £(1,698) million; 2015 – £(2,215) million). UK US Rest of World Group At 31 December 2016 £m £m £m £m Equities: – listed 5,357 1,358 486 7,201 – unlisted — — 14 14 Multi-asset funds 1,545 — — 1,545 Property: – unlisted 314 216 28 558 Corporate bonds: – listed 292 213 96 601 – unlisted 321 — 24 345 Government bonds: – listed 6,165 815 739 7,719 Insurance contracts 856 — 637 1,493 Other assets (2,267 ) 288 73 (1,906 ) Fair value of assets 12,583 2,890 2,097 17,570 Present value of scheme obligations (12,884 ) (3,752 ) (3,018 ) (19,654 ) Net obligation (301 ) (862 ) (921 ) (2,084 ) Included in Other non-current 276 — 37 313 Included in Pensions and other post-employment benefits (577 ) (862 ) (958 ) (2,397 ) (301 ) (862 ) (921 ) (2,084 ) Actual return on plan assets 2,473 153 99 2,725 At 31 December 2015 UK US Rest of World Group Equities: – listed 5,187 1,235 355 6,777 – unlisted — — 1 1 Multi-asset funds 481 — — 481 Property: – unlisted 302 175 8 485 Corporate bonds: – listed 251 727 76 1,054 – unlisted 232 — 2 234 Government bonds: – listed 5,687 184 664 6,535 Insurance contracts 755 — 439 1,194 Other assets (2,611 ) 180 205 (2,226 ) Fair value of assets 10,284 2,501 1,750 14,535 Present value of scheme obligations (10,601 ) (3,134 ) (2,384 ) (16,119 ) Net obligation (317 ) (633 ) (634 ) (1,584 ) Included in Other non-current 232 — 26 258 Included in Pensions and other post-employment benefits (549 ) (633 ) (660 ) (1,842 ) (317 ) (633 ) (634 ) (1,584 ) Actual return on plan assets (17 ) (30 ) 23 (24 ) |
Summary of Movements in Fair Values of Assets | Post-retirement Pensions benefits UK US Rest of World Group Group Movements in fair values of assets £m £m £m £m £m Assets at 1 January 2015 10,551 2,531 1,529 14,611 — Exchange adjustments — 147 (52 ) 95 — Additions through business combinations — — 233 233 — Interest income 374 95 33 502 — Expenses (7 ) (4 ) (4 ) (15 ) — Settlements and curtailments — — (16 ) (16 ) — Remeasurement (391 ) (125 ) (10 ) (526 ) — Employer contributions 164 132 112 408 82 Scheme participants’ contributions 4 — 14 18 14 Benefits paid (411 ) (275 ) (89 ) (775 ) (96 ) Assets at 31 December 2015 10,284 2,501 1,750 14,535 — Exchange adjustments — 459 305 764 — Interest income 385 108 37 530 — Expenses (7 ) (12 ) — (19 ) — Settlements and curtailments — — (110 ) (110 ) — Remeasurement 2,088 45 62 2,195 — Employer contributions 319 31 131 481 91 Scheme participants’ contributions 4 — 14 18 17 Benefits paid (490 ) (242 ) (92 ) (824 ) (108 ) Assets at 31 December 2016 12,583 2,890 2,097 17,570 — Exchange adjustments — (244 ) 24 (220 ) — Interest income 333 104 33 470 — Expenses (7 ) (12 ) — (19 ) — Settlements and curtailments — — (4 ) (4 ) — Remeasurement 560 290 49 899 — Employer contributions 225 103 116 444 101 Scheme participants’ contributions 4 — 17 21 17 Benefits paid (544 ) (257 ) (80 ) (881 ) (118 ) Assets at 31 December 2017 13,154 2,874 2,252 18,280 — |
Summary of Movements in Defined Benefit Obligations | Post-retirement Pensions benefits UK US Rest of World Group Group Movements in defined benefit obligations £m £m £m £m £m Obligations at 1 January 2015 (10,991 ) (3,133 ) (2,176 ) (16,300 ) (1,397 ) Exchange adjustments — (184 ) 78 (106 ) (64 ) Additions through business combinations — — (397 ) (397 ) (11 ) Service cost (77 ) (67 ) (110 ) (254 ) (22 ) Past service cost (25 ) (2 ) 10 (17 ) 8 Interest cost (388 ) (117 ) (46 ) (551 ) (52 ) Settlements and curtailments — (1 ) 25 24 7 Remeasurement 473 95 157 725 62 Scheme participants’ contributions (4 ) — (14 ) (18 ) (14 ) Benefits paid 411 275 89 775 96 Obligations at 31 December 2015 (10,601 ) (3,134 ) (2,384 ) (16,119 ) (1,387 ) Exchange adjustments — (586 ) (396 ) (982 ) (248 ) Service cost (70 ) (66 ) (110 ) (246 ) (31 ) Past service cost (52 ) (1 ) (1 ) (54 ) (3 ) Interest cost (394 ) (135 ) (57 ) (586 ) (56 ) Settlements and curtailments — — 138 138 — Remeasurement (2,253 ) (72 ) (286 ) (2,611 ) (59 ) Scheme participants’ contributions (4 ) — (14 ) (18 ) (17 ) Benefits paid 490 242 92 824 108 Obligations at 31 December 2016 (12,884 ) (3,752 ) (3,018 ) (19,654 ) (1,693 ) Exchange adjustments — 305 (45 ) 260 119 Service cost (79 ) (70 ) (131 ) (280 ) (30 ) Past service cost (37 ) — — (37 ) 2 Interest cost (340 ) (135 ) (49 ) (524 ) (59 ) Settlements and curtailments — — 4 4 — Remeasurement (301 ) (50 ) (63 ) (414 ) 64 Scheme participants’ contributions (4 ) — (17 ) (21 ) (17 ) Benefits paid 544 257 80 881 118 Obligations at 31 December 2017 (13,101 ) (3,445 ) (3,239 ) (19,785 ) (1,496 ) |
Summary of Net Defined Benefit Liability | The movement in the net defined benefit liability is as follows: 2017 2016 2015 £m £m £m At 1 January (2,084 ) (1,584 ) (1,689 ) Exchange adjustments 40 (218 ) (11 ) Additions through business combinations — — (164 ) Service cost (280 ) (246 ) (254 ) Past service cost (37 ) (54 ) (17 ) Interest cost (54 ) (56 ) (49 ) Settlements and curtailments — 28 8 Remeasurements: Return on plan assets, excluding amounts included in interest 899 2,195 (526 ) Gain from change in demographic assumptions 209 85 120 (Loss)/gain from change in financial assumptions (555 ) (2,770 ) 362 Experience (losses)/gains (68 ) 74 243 Employer contributions 444 481 408 Expenses/other movements (19 ) (19 ) (15 ) At 31 December (1,505 ) (2,084 ) (1,584 ) |
Summary of Defined Benefit Pension Obligation Analysed by Membership Category | The defined benefit pension obligation analysed by membership category is as follows: 2017 2016 2015 Active 4,611 4,576 5,510 Retired 9,805 9,574 7,969 Deferred 5,369 5,504 4,231 19,785 19,654 17,710 |
Summary of Post-Retirement Benefit Obligation Analysed By Membership Category | The post-retirement benefit obligation analysed by membership category is as follows: 2017 2016 2015 Active 514 594 499 Retired 981 1,099 887 Deferred 1 — 1 1,496 1,693 1,387 |
Summary of Weighted Average Duration of Defined Benefit Obligation | 2017 2016 2015 Active 4,611 4,576 5,510 Retired 9,805 9,574 7,969 Deferred 5,369 5,504 4,231 19,785 19,654 17,710 The post-retirement benefit obligation analysed by membership category is as follows: 2017 2016 2015 Active 514 594 499 Retired 981 1,099 887 Deferred 1 — 1 1,496 1,693 1,387 The weighted average duration of the defined benefit obligation is as follows: 2017 2016 2015 Pension benefits 16 16 16 Post-retirement benefits 11 12 12 |
Summary of Changes In Assumptions Used on Benefit Obligations, Defined Benefit Pension and Post Retirement Costs | Effect of changes in assumptions used on the benefit obligations and on the 2018 annual defined benefit pension and post retirement costs. £m A 0.25% decrease in discount rate would have the following approximate effect: Increase in annual pension cost 29 Decrease in annual post-retirement benefits cost (1 ) Increase in pension obligation 800 Increase in post-retirement benefits obligation 41 A one year increase in life expectancy would have the following approximate effect: Increase in annual pension cost 20 Increase in annual post-retirement benefits cost 2 Increase in pension obligation 608 Increase in post-retirement benefits obligation 39 A 1% increase in the rate of future healthcare inflation would have the following approximate effect: Increase in annual post-retirement benefits cost 2 Increase in post-retirement benefits obligation 68 A 0.25% increase in inflation would have the following approximate effect: Increase in annual pension cost 19 Increase in pension obligation 502 |
Share-based Incentive Plans [Member] | |
Summary of Analysis of Defined Benefit Pension Obligation | The cost of share-based incentive plans is analysed as follows: 2017 2016 2015 Share Value Plan 276 271 307 Performance Share Plan 47 39 26 Share option plans 4 4 4 Cash settled and other plans 20 24 12 347 338 349 |
Defined benefit pension and post-retirement healthcare scheme. [member] | |
Summary of Analysis of Defined Benefit Pension Obligation | The costs of the defined benefit pension and post-retirement healthcare schemes are charged in the income statement as follows: 2017 2016 2015 £m £m £m Cost of sales 162 135 127 Selling, general and administration 238 221 194 Research and development 77 81 65 477 437 386 |
Defined Benefit Pension Obligation [Member] | |
Summary of Analysis of Defined Benefit Pension Obligation | The defined benefit pension obligation is analysed as follows: 2017 2016 2015 £m £m £m Funded (19,052 ) (18,974 ) (15,552 ) Unfunded (733 ) (680 ) (567 ) (19,785 ) (19,654 ) (16,119 ) |
Post-retirement benefits [member] | |
Summary of Net Defined Benefit Liability | 2017 2016 2015 £m £m £m At 1 January (2,084 ) (1,584 ) (1,689 ) Exchange adjustments 40 (218 ) (11 ) Additions through business combinations — — (164 ) Service cost (280 ) (246 ) (254 ) Past service cost (37 ) (54 ) (17 ) Interest cost (54 ) (56 ) (49 ) Settlements and curtailments — 28 8 Remeasurements: Return on plan assets, excluding amounts included in interest 899 2,195 (526 ) Gain from change in demographic assumptions 209 85 120 (Loss)/gain from change in financial assumptions (555 ) (2,770 ) 362 Experience (losses)/gains (68 ) 74 243 Employer contributions 444 481 408 Expenses/other movements (19 ) (19 ) (15 ) At 31 December (1,505 ) (2,084 ) (1,584 ) The remeasurements included within post-retirement benefits are detailed below: 2017 2016 2015 £m £m £m Gain from change in demographic assumptions 47 — 15 (Loss)/gain from change in financial assumptions (1 ) (81 ) 59 Experience gains/(losses) 18 22 (12 ) 64 (59 ) 62 |
Major restructuring costs (Tabl
Major restructuring costs (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Costs Charged to Operating Profit | The costs charged to operating profit under these programmes were as follows: 2017 2016 2015 Increase in provision for major restructuring programmes (see Note 29) 259 163 718 Amount of provision reversed unused (see Note 29) (43 ) (140 ) (44 ) Impairment losses recognised 278 158 419 Other non-cash 247 108 51 Other cash costs 315 681 747 1,056 970 1,891 |
Finance income (Tables)
Finance income (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Interest Income | 2017 2016 2015 £m £m £m Interest income arising from: cash and cash equivalents 60 67 71 available-for-sale 2 1 1 derivatives at fair value through profit or loss — — 24 loans and receivables 1 2 3 Fair value adjustments on derivatives at fair value through profit or loss 2 2 5 65 72 104 |
Finance expense (Tables)
Finance expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Finance Cost | 2017 2016 2015 £m £m £m Interest expense arising on: financial liabilities at amortised cost (698 ) (671 ) (655 ) derivatives at fair value through profit or loss (22 ) (30 ) (64 ) Fair value movements on other derivatives at fair value through profit or loss (4 ) (3 ) (6 ) Reclassification of cash flow hedge from other comprehensive income — (1 ) (2 ) Unwinding of discounts on provisions (16 ) (16 ) (16 ) Other finance expense 6 (15 ) (14 ) (734 ) (736 ) (757 ) |
Associates and joint ventures (
Associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of After Tax Profits and Losses of Associates and Joint Ventures | The Group’s share of after tax profits and losses of associates and joint ventures is set out below: 2017 2016 2015 Share of after tax profits of associates 16 9 16 Share of after tax losses of joint ventures (3 ) (4 ) (2 ) 13 5 14 |
Summary of Group Held for Significant Associate | Summarised income statement information in respect of Innoviva is set out below for the periods in which the Group accounted for its investment in Innoviva as an associate. The Group’s 2017 share of after tax profits of associates and other comprehensive income includes a profit of £18 million and other comprehensive income of £nil in respect of Innoviva. Since 1 September 2017 2016 2015 £m £m £m Turnover 165 98 20 Profit after taxation 103 44 4 Other comprehensive income — — — Total comprehensive income 103 44 4 |
Summary of Aggregated Financial Information | Aggregated financial information in respect of GSK’s share of other associated undertakings and joint ventures is set out below: 2017 2016 2015 Share of turnover 252 133 188 Share of after tax (losses)/profits (5 ) (1 ) 12 Share of other comprehensive income — — 25 Share of total comprehensive (expense)/income (5 ) (1 ) 37 |
Taxation (Tables)
Taxation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Taxation Charge Based on Profits | Taxation charge based on profits for the year 2017 2016 2015 UK current year charge 199 241 156 Rest of World current year charge 1,928 1,326 2,924 Credit in respect of prior periods (508 ) (149 ) (508 ) Total current taxation 1,619 1,418 2,572 Total deferred taxation (263 ) (541 ) (418 ) Total tax 1,356 877 2,154 |
Summary of Reconciliation of Tax Charge Calculated at the UK Statutory Rate on the Group Profit Before Tax with the Actual Tax Charge | The following table reconciles the tax charge calculated at the UK statutory rate on the Group profit before tax with the actual tax charge for the year. Reconciliation of taxation on Group profits 2017 2017 2016 2016 2015 2015 Profit before tax 3,525 1,939 10,526 UK statutory rate of taxation 679 19.25 388 20.0 2,131 20.25 Differences in overseas taxation rates 635 18.0 593 30.6 1,035 9.8 Benefit of intellectual property incentives (458 ) (13.0 ) (321 ) (16.5 ) (286 ) (2.7 ) R&D credits (75 ) (2.1 ) (93 ) (4.8 ) (38 ) (0.4 ) Remeasurement of non-taxable 227 6.4 340 17.5 17 0.2 Losses not recognised/(previously unrecognised losses) 28 0.8 (15 ) (0.8 ) 31 0.3 Permanent differences on disposals and acquisitions 4 0.1 (21 ) (1.1 ) (248 ) (2.4 ) Other permanent differences 196 5.6 97 5.0 58 0.6 Reassessment of prior year estimates in respect of current and deferred taxes (475 ) (13.5 ) (116 ) (6.0 ) (578 ) (5.5 ) US and Swiss tax reform 595 16.9 Tax on unremitted earnings — — 25 1.3 32 0.3 Tax charge/tax rate 1,356 38.5 877 45.2 2,154 20.5 |
Summary of Tax on Items Charged to Equity and Statement of Comprehensive Income | Future tax charges, and therefore the Group’s effective tax rate, may be affected by factors such as acquisitions, disposals, restructurings, the location of research and development activity, tax regime reforms and resolution of open matters as we continue to bring our tax affairs up to date around the world. 2017 2016 2015 Tax on items charged to equity and statement of comprehensive income £m £m £m Current taxation Share-based payments — 7 22 Defined benefit plans 26 32 30 26 39 52 Deferred taxation Share-based payments (4 ) — (12 ) Defined benefit plans (247 ) 94 (110 ) Exchange movements — — — Fair value movements on cash flow hedges — 2 — Fair value movements on available-for-sale 29 51 (55 ) (222 ) 147 (177 ) Total (charge)/credit to equity and statement of comprehensive income (196 ) 186 (125 ) |
Impact of Tax Reform on Profits Attributable to Shareholders | The impact of tax reform on profits attributable to shareholders in 2017 is set out below. Swiss tax US tax reform reform £m £m Other operating expenses — (666 ) Current tax — (273 ) Deferred tax 483 (805 ) Impact on profit after taxation for the year 483 (1,744 ) Profit attributable to non-controlling 176 (114 ) Profit attributable to shareholders 307 (1,630 ) |
Impact on Tax Charge Arising From US Tax Reform | The impact on the tax charge arising from US tax reform was as follows: Current tax Deferred tax Total £m £m £m Revaluation of assets and liabilities 75 (805 ) (730 ) Repatriation tax (348 ) — (348 ) (273 ) (805 ) (1,078 ) |
Summary of Movement in Deferred Tax Assets and Liabilities | Movement in deferred tax assets and liabilities Pensions & Share Other Accelerated other post option net capital Intangible Contingent Intra-Group employment Tax and award temporary allowances assets consideration profit benefits losses schemes differences Total £m £m £m £m £m £m £m £m £m At 1 January 2017 (377 ) (2,324 ) 1,138 1,054 1,262 227 110 1,350 2,440 Exchange adjustments (7 ) 75 — (58 ) (48 ) (5 ) (4 ) (18 ) (65 ) Credit/(charge) to income statement 62 330 (52 ) 256 3 59 (1 ) (88 ) 569 Credit/(charge) to income statement associated with US tax reform 5 116 (218 ) (235 ) (210 ) (20 ) (27 ) (216 ) (805 ) Credit to income statement associated with Swiss tax reform — 483 — — — — — — 483 (Charge)/credit to statement of comprehensive income and equity — — — — (247 ) — (4 ) 29 (222 ) At 31 December 2017 (317 ) (1,320 ) 868 1,017 760 261 74 1,057 2,400 |
Summary of Net Temporary Differences Include Accrued Expenses | Deferred tax assets and liabilities are recognised on the balance sheet as follows: 2017 2016 £m £m Deferred tax assets 3,796 4,374 Deferred tax liabilities (1,396 ) (1,934 ) 2,400 2,440 |
Summary of Temporary Difference Unused Tax Losses and Unused Tax Credits | Deferred tax assets are recognised where it is probable that future taxable profit will be available to utilise losses. Unrecognised tax losses are as follows: 2017 2016 Unrecognised Unrecognised deferred tax deferred tax Tax losses asset Tax losses asset Unrecognised tax losses £m £m £m £m Trading losses expiring: Within 10 years 802 187 786 255 More than 10 years 872 99 842 131 Available indefinitely 86 14 95 15 At 31 December 1,760 300 1,723 401 Capital losses 1,924 372 2,320 396 At 31 December 1,924 372 2,320 396 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Basic and Diluted Earnings Per Share | 2017 2016 2015 pence pence pence Basic earnings per share 31.4 18.8 174.3 Diluted earnings per share 31.0 18.6 172.3 |
Schedule of Numbers of Shares Earnings Per Share | The numbers of shares used in calculating basic and diluted earnings per share are reconciled below. 2017 2016 2015 Weighted average number of shares in issue millions millions millions Basic 4,886 4,860 4,831 Dilution for share options and awards 55 49 57 Diluted 4,941 4,909 4,888 |
Dividends (Tables)
Dividends (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Interim Financial Reporting | 2017 2016 2015 Dividend Total Dividend Total Dividend Total per share dividend per share dividend per share dividend Paid/payable (pence) £m Paid (pence) £m Paid (pence) £m First interim 13 July 2017 19 928 14 July 2016 19 923 9 July 2015 19 920 Second interim 12 October 2017 19 929 13 October 2016 19 925 1 October 2015 19 919 Third interim 11 January 2018 19 929 12 January 2017 19 925 14 January 2016 19 919 Fourth interim 12 April 2018 23 1,125 13 April 2017 23 1,124 14 April 2016 23 1,114 Total 80 3,911 80 3,897 80 3,872 Special dividend 14 April 2016 20 969 |
Summary of Dividends to Shareholders | The amounts recognised in each year were as follows: 2017 2016 2015 £m £m £m Dividends to shareholders 3,906 4,850 3,874 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Property, Plant and Equipment | Plant, Land and equipment Assets in buildings and vehicles construction Total £m £m £m £m Cost at 1 January 2016 7,305 10,775 2,670 20,750 Exchange adjustments 956 1,100 271 2,327 Other additions 117 384 1,043 1,544 Capitalised borrowing costs — — 30 30 Disposals and write-offs (349 ) (1,422 ) (53 ) (1,824 ) Reclassifications 110 512 (761 ) (139 ) Transfer to assets held for sale (378 ) (114 ) (32 ) (524 ) Cost at 31 December 2016 7,761 11,235 3,168 22,164 Exchange adjustments (127 ) (62 ) (45 ) (234 ) Other additions 69 296 1,219 1,584 Capitalised borrowing costs — — 30 30 Disposals and write-offs (376 ) (685 ) (31 ) (1,092 ) Reclassifications 602 1,186 (1,826 ) (38 ) Transfer to assets held for sale (462 ) (219 ) (14 ) (695 ) Cost at 31 December 2017 7,467 11,751 2,501 21,719 Depreciation at 1 January 2016 (2,914 ) (7,415 ) — (10,329 ) Exchange adjustments (377 ) (717 ) — (1,094 ) Charge for the year (338 ) (640 ) — (978 ) Disposals and write-offs 205 1,270 — 1,475 Transfer to assets held for sale 165 92 — 257 Depreciation at 31 December 2016 (3,259 ) (7,410 ) — (10,669 ) Exchange adjustments 50 110 — 160 Charge for the year (299 ) (689 ) — (988 ) Disposals and write-offs 158 539 — 697 Transfer to assets held for sale 314 190 — 504 Depreciation at 31 December 2017 (3,036 ) (7,260 ) — (10,296 ) Impairment at 1 January 2016 (274 ) (373 ) (106 ) (753 ) Exchange adjustments (45 ) (37 ) (11 ) (93 ) Disposals and write-offs 91 135 35 261 Impairment losses (135 ) (117 ) (6 ) (258 ) Reversal of impairments 38 38 2 78 Transfer to assets held for sale 46 10 22 78 Impairment at 31 December 2016 (279 ) (344 ) (64 ) (687 ) Exchange adjustments 8 2 (2 ) 8 Disposals and write-offs 210 104 28 342 Impairment losses (194 ) (138 ) (17 ) (349 ) Reversal of impairments 7 9 1 17 Transfer to assets held for sale 87 8 11 106 Impairment at 31 December 2017 (161 ) (359 ) (43 ) (563 ) Total depreciation and impairment at 31 December 2016 (3,538 ) (7,754 ) (64 ) (11,356 ) Total depreciation and impairment at 31 December 2017 (3,197 ) (7,619 ) (43 ) (10,859 ) Net book value at 1 January 2016 4,117 2,987 2,564 9,668 Net book value at 31 December 2016 4,223 3,481 3,104 10,808 Net book value at 31 December 2017 4,270 4,132 2,458 10,860 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Changes in Goodwill | 2017 2016 £m £m Cost at 1 January 5,965 5,162 Exchange adjustments (228 ) 814 Additions through business combinations (Note 38) — 7 Transfer to assets held for sale (3 ) (18 ) Cost at 31 December 5,734 5,965 Net book value at 1 January 5,965 5,162 Net book value at 31 December 5,734 5,965 |
Summary of Goodwill Allocated to Segments | 2017 2016 £m £m Cost at 1 January 5,965 5,162 Exchange adjustments (228 ) 814 Additions through business combinations (Note 38) — 7 Transfer to assets held for sale (3 ) (18 ) Cost at 31 December 5,734 5,965 Net book value at 1 January 5,965 5,162 Net book value at 31 December 5,734 5,965 Goodwill is allocated to the Group’s segments as follows: 2017 2016 £m £m Pharmaceuticals 3,172 3,288 Vaccines 1,302 1,353 Consumer Healthcare 1,260 1,324 Net book value at 31 December 5,734 5,965 |
Schedule of Discounted Cash Flow Models Used in Impairment Tests | Details relating to the discounted cash flow models used in the impairment tests of the Pharmaceuticals, Vaccines and Consumer Healthcare cash generating units are as follows: Valuation basis Fair value less costs of disposal Key assumptions Sales growth rates Profit margins Terminal growth rate Discount rate Taxation rate Determination of assumptions Growth rates are internal forecasts based on both internal and external market information. Margins reflect past experience, adjusted for expected changes. Terminal growth rates based on management’s estimate of future long-term average growth rates. Discount rates based on Group WACC, adjusted where appropriate. Taxation rates based on appropriate rates for each region. Period of specific projected cash flows Five years Terminal growth rate and discount rate Terminal growth rate Discount rate Pharmaceuticals 1% p.a. 7% Vaccines 2% p.a. 7% Consumer Healthcare 2% p.a. 7% |
Other intangible assets (Tables
Other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Other Intangible Assets | Computer Licences, Amortised Indefinite life software patents, etc. brands brands Total £m £m £m £m £m Cost at 1 January 2016 2,028 13,394 387 8,074 23,883 Exchange adjustments 137 1,139 20 1,320 2,616 Capitalised development costs — 219 21 — 240 Capitalised borrowing costs 4 — — — 4 Additions through business combinations — 102 — — 102 Other additions 238 349 — — 587 Disposals and asset write-offs (389 ) (21 ) (1 ) (7 ) (418 ) Transfer to assets held for sale (1 ) (39 ) — (12 ) (52 ) Reclassifications 139 — — — 139 Cost at 31 December 2016 2,156 15,143 427 9,375 27,101 Exchange adjustments (37 ) (215 ) (4 ) (272 ) (528 ) Capitalised development costs — 251 — — 251 Capitalised borrowing costs 2 3 — — 5 Other additions 233 221 — — 454 Disposals and asset write-offs (217 ) (38 ) — — (255 ) Transfer to assets held for sale (1 ) (90 ) — (44 ) (135 ) Reclassifications 38 — 66 (66 ) 38 Cost at 31 December 2017 2,174 15,275 489 8,993 26,931 Amortisation at 1 January 2016 (1,294 ) (4,030 ) (133 ) — (5,457 ) Exchange adjustments (92 ) (410 ) (5 ) — (507 ) Charge for the year (152 ) (553 ) (91 ) — (796 ) Disposals and asset write-offs 353 — 5 — 358 Transfer to assets held for sale 1 10 — — 11 Amortisation at 31 December 2016 (1,184 ) (4,983 ) (224 ) — (6,391 ) Exchange adjustments 25 141 — — 166 Charge for the year (163 ) (761 ) (10 ) — (934 ) Disposals and asset write-offs 210 25 — — 235 Transfer to assets held for sale 1 25 — — 26 Amortisation at 31 December 2017 (1,111 ) (5,553 ) (234 ) — (6,898 ) Impairment at 1 January 2016 (39 ) (1,439 ) (154 ) (122 ) (1,754 ) Exchange adjustments (3 ) (266 ) — (3 ) (272 ) Impairment losses (2 ) (15 ) — (5 ) (22 ) Disposals and asset write-offs 35 40 11 — 86 Transfer to assets held for sale — 28 — — 28 Impairment at 31 December 2016 (9 ) (1,652 ) (143 ) (130 ) (1,934 ) Exchange adjustments — 110 — 3 113 Impairment losses (2 ) (546 ) — (132 ) (680 ) Disposals and asset write-offs 2 5 — — 7 Transfer to assets held for sale — 19 — 4 23 Impairment at 31 December 2017 (9 ) (2,064 ) (143 ) (255 ) (2,471 ) Total amortisation and impairment at 31 December 2016 (1,193 ) (6,635 ) (367 ) (130 ) (8,325 ) Total amortisation and impairment at 31 December 2017 (1,120 ) (7,617 ) (377 ) (255 ) (9,369 ) Net book value at 1 January 2016 695 7,925 100 7,952 16,672 Net book value at 31 December 2016 963 8,508 60 9,245 18,776 Net book value at 31 December 2017 1,054 7,658 112 8,738 17,562 |
Schedule of Amortisation and Impairment Losses, Net of Reversals | Amortisation and impairment losses, net of reversals, have been charged in the income statement as follows: Amortisation Net impairment losses 2017 2016 2017 2016 £m £m £m £m Cost of sales 578 582 400 7 Selling, general and administration 116 95 2 2 Research and development 240 119 278 13 934 796 680 22 |
Summary of Book Values of Largest Individual Items | Licences, patents, etc. includes a large number of acquired licences, patents, know-how 2017 2016 £m £m Meningitis portfolio 2,450 2,511 dolutegravir 1,389 1,487 Benlysta 965 1,019 Fluarix/FluLaval 321 380 HIV assets acquired from BMS 277 277 Selzentry 162 188 Okairos technology platform 202 173 Others 1,892 2,473 7,658 8,508 |
Summary of Book Values of Major Brands | Indefinite life brands comprise a portfolio of Consumer Healthcare products primarily acquired with the acquisitions of Sterling Winthrop, Inc. in 1994, Block Drug Company, Inc. in 2001, CNS, Inc. in 2006 and the Novartis Consumer Healthcare business in 2015, together with a number of pharmaceutical brands from the acquisition of Stiefel Laboratories, Inc. in 2009. The book values of the major brands are as follows: 2017 2016 £m £m Voltaren 2,716 2,847 Otrivin 1,380 1,447 Fenistil 648 680 Theraflu 441 462 Panadol 386 354 Sensodyne 265 243 Lamisil 289 304 Breathe Right 236 199 Stiefel trade name 228 211 Excedrin 185 194 Physiogel 166 166 Polident 112 103 Others 1,686 2,035 8,738 9,245 |
Investments in associates and70
Investments in associates and joint ventures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Investments in Associates and Joint Ventures | Joint 2017 Joint 2016 ventures Associates Total ventures Associates Total £m £m £m £m £m £m At 1 January 19 244 263 20 187 207 Exchange adjustments (2 ) (10 ) (12 ) 4 41 45 Additions — 15 15 3 8 11 Disposals — (92 ) (92 ) — — — Distributions received (1 ) (1 ) (2 ) (2 ) (1 ) (3 ) Other movements — (2 ) (2 ) (2 ) — (2 ) (Loss)/profit after tax recognised in the consolidated income statement (3 ) 16 13 (4 ) 9 5 At 31 December 13 170 183 19 244 263 |
Summary of Balance Sheet Information | Summarised balance sheet information, based on results information, in respect of Innoviva is set out below: At At 2017 2016 £m £m Non-current 124 146 Current assets 148 160 Current liabilities (26 ) (16 ) Non-current (426 ) (575 ) Net liabilities (180 ) (285 ) 2017 2016 £m £m Interest in associated undertaking (57 ) (84 ) Goodwill 86 84 Fair value and other adjustments 118 138 Carrying value at 31 December 147 138 |
Other investments (Tables)
Other investments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Other Investments | 2017 2016 £m £m At 1 January 985 1,255 Exchange adjustments (64 ) 211 Additions 80 96 Net fair value movements 11 130 Impairment losses (30 ) (24 ) Disposals (64 ) (683 ) At 31 December 918 985 |
Schedule of Carrying Value of Other Investments | The carrying value at 31 December of Other investments which have been impaired is as follows: 2017 2016 £m £m Original cost 475 515 Cumulative impairments recognised in the income statement (283 ) (314 ) Subsequent fair value increases 210 282 Carrying value at 31 December 402 483 |
Other non-current assets (Table
Other non-current assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Other Non-Current Assets | 2017 2016 £m £m Amounts receivable under insurance contracts 648 602 Pension schemes in surplus 538 313 Other receivables 227 284 1,413 1,199 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Inventories | 2017 2016 £m £m Raw materials and consumables 1,193 1,068 Work in progress 2,381 2,299 Finished goods 1,983 1,735 5,557 5,102 |
Trade and other receivables (Ta
Trade and other receivables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Trade Receivables and Bad and Doubtful Debts | 2017 2016 £m £m Trade receivables, net of provision for bad and doubtful debts 4,672 4,615 Accrued income 21 64 Other prepayments 308 335 Interest receivable 10 11 Employee loans and advances 19 17 Other receivables 970 984 6,000 6,026 2017 2016 Bad and doubtful debt provision £m £m At 1 January 207 167 Exchange adjustments (4 ) 23 Charge for the year 31 77 Subsequent recoveries of amounts provided for (79 ) (59 ) Utilised (15 ) (1 ) At 31 December 140 207 |
Cash and cash equivalents (Tabl
Cash and cash equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Cash and Cash Equivalents | 2017 2016 £m £m Cash at bank and in hand 826 1,462 Short-term deposits 3,007 3,435 3,833 4,897 |
Assets held for sale (Tables)
Assets held for sale (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Assets Held for Sale | 2017 2016 £m £m Property, plant and equipment 57 184 Goodwill — 13 Other intangibles 49 12 Inventory 7 7 Other — (1 ) 113 215 |
Trade and other payables (Table
Trade and other payables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Trade and Other Payables | 2017 2016 £m £m Trade payables 3,528 3,596 Wages and salaries 1,228 1,236 Social security 166 120 Consumer Healthcare put option 8,606 — ViiV Healthcare put option 1,304 1,319 Other payables 363 447 Deferred income 240 158 Customer return and rebate accruals 3,463 2,778 Other accruals 2,072 2,310 20,970 11,964 |
Summary of Increase/(Decrease) in Financial Liability and Loss/(Gain) in Income Statement | The table below shows on an indicative basis the income statement and balance sheet sensitivity to reasonably possible changes in key assumptions. 2017 Increase/(decrease) in financial liability and loss/(gain) in Income statement £m 10% increase in sales forecasts or sales multiple applied 850 10% decrease in sales forecasts or sales multiple applied (850 ) 10 cent appreciation of US Dollar 88 10 cent depreciation of US Dollar (76 ) 10 cent appreciation of Euro 303 10 cent depreciation of Euro (254 ) Pfizer’s put option over its shareholding in ViiV Healthcare was recognised during 2016 and is currently exercisable. The table below shows on an indicative basis the income statement and balance sheet sensitivity of the Pfizer put option to reasonably possible changes in key assumptions. 2017 Increase/(decrease) in financial liability and loss/(gain) in Income statement £m 10% increase in sales forecasts 150 10% decrease in sales forecasts (149 ) 10 cent appreciation of US Dollar 76 10 cent depreciation of US Dollar (66 ) 10 cent appreciation of Euro 44 10 cent depreciation of Euro (37 ) |
Other provisions (Tables)
Other provisions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Other Provisions | Legal Major Employee and other restructuring related Other disputes programmes provisions provisions Total £m £m £m £m £m At 1 January 2017 344 554 306 296 1,500 Exchange adjustments (29 ) (16 ) (8 ) (6 ) (59 ) Charge for the year 173 259 50 69 551 Reversed unused (7 ) (43 ) (3 ) (36 ) (89 ) Unwinding of discount 2 4 — 10 16 Utilised (288 ) (233 ) (41 ) (67 ) (629 ) Reclassifications and other movements (9 ) (3 ) — 5 (7 ) Transfer to Pension obligations — (18 ) — — (18 ) At 31 December 2017 186 504 304 271 1,265 To be settled within one year 138 292 90 109 629 To be settled after one year 48 212 214 162 636 At 31 December 2017 186 504 304 271 1,265 |
Other non-current liabilities (
Other non-current liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Other Noncurrent Liabilities | 2017 2016 £m £m Accruals and deferred income 104 66 Consumer Healthcare put option liability — 7,420 Other payables 877 959 981 8,445 |
Net debt (Tables)
Net debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Current Assets, Short and Long Term Borrowings | 2017 2016 Listing exchange £m £m Current assets: Liquid investments 78 89 Cash and cash equivalents 3,833 4,897 3,911 4,986 Short-term borrowings: Commercial paper (529 ) (1,094 ) Bank loans and overdrafts (236 ) (332 ) Obligations under finance leases (23 ) (23 ) 1.50% US$ US Medium Term Note 2017 New York Stock Exchange — (1,612 ) 5.625% € European Medium Term Note 2017 London Stock Exchange — (1,068 ) 5.65% US$ US Medium Term Note 2018 New York Stock Exchange (2,037 ) — (2,825 ) (4,129 ) Long-term borrowings: 5.65% US$ US Medium Term Note 2018 New York Stock Exchange — (2,216 ) 0.625% € European Medium Term Note 2019 London Stock Exchange (1,324 ) (1,276 ) 0% € European Medium Term Note 2020 London Stock Exchange (1,060 ) — 2.85% US$ US Medium Term Note 2022 New York Stock Exchange (1,474 ) (1,603 ) 2.8% US$ US Medium Term Note 2023 New York Stock Exchange (919 ) (999 ) 1.375% € European Medium Term Note 2024 London Stock Exchange (876 ) (845 ) 4.00% € European Medium Term Note 2025 London Stock Exchange (659 ) (635 ) 1% € European Medium Term Note 2026 London Stock Exchange (617 ) — 3.375% £ European Medium Term Note 2027 London Stock Exchange (593 ) (593 ) 1.375% € European Medium Term Note 2029 London Stock Exchange (439 ) — 5.25% £ European Medium Term Note 2033 London Stock Exchange (986 ) (986 ) 5.375% US$ US Medium Term Note 2034 London Stock Exchange (368 ) (401 ) 6.375% US$ US Medium Term Note 2038 New York Stock Exchange (2,021 ) (2,199 ) 6.375% £ European Medium Term Note 2039 London Stock Exchange (695 ) (695 ) 5.25% £ European Medium Term Note 2042 London Stock Exchange (989 ) (988 ) 4.2% US$ US Medium Term Note 2043 New York Stock Exchange (363 ) (395 ) 4.25% £ European Medium Term Note 2045 London Stock Exchange (789 ) (789 ) Obligations under finance leases (43 ) (41 ) Other long term borrowings (49 ) — (14,264 ) (14,661 ) Net debt (13,178 ) (13,804 ) |
Schedule of Finance Lease Obligations | Finance lease obligations 2017 2016 £m £m Rental payments due within one year 25 25 Rental payments due between one and two years 29 23 Rental payments due between two and three years 9 12 Rental payments due between three and four years 3 7 Rental payments due between four and five years 2 — Rental payments due after five years 10 — Total future rental payments 78 67 Future finance charges (12 ) (3 ) Total finance lease obligations 66 64 |
Share capital and share premi81
Share capital and share premium account (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Share Capital and Share Premium | Ordinary Shares of 25p each Share Number £m £m Share capital authorised At 31 December 2015 10,000,000,000 2,500 At 31 December 2016 10,000,000,000 2,500 At 31 December 2017 10,000,000,000 2,500 Share capital issued and fully paid At 1 January 2015 5,355,297,232 1,339 2,759 Issued under employee share schemes 6,010,415 1 72 At 31 December 2015 5,361,307,647 1,340 2,831 Issued under employee share schemes 7,008,415 2 87 Ordinary shares acquired by ESOP Trusts — — 36 At 31 December 2016 5,368,316,062 1,342 2,954 Issued under employee share schemes 4,237,758 1 55 Ordinary shares acquired by ESOP Trusts — — 10 At 31 December 2017 5,372,553,820 1,343 3,019 |
Summary of Share Capital | 31 December 2017 31 December 2016 000 000 Number of shares issuable under employee share schemes 38,647 71,382 Number of unissued shares not under option 4,588,799 4,560,302 |
Movements in equity (Tables)
Movements in equity (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Cumulative Translation Exchange in Equity | Net translation exchange included in: Non- Total Retained Fair value controlling translation earnings reserve interests exchange £m £m £m £m At 1 January 2015 (137 ) 4 (117 ) (250 ) Exchange movements on overseas net assets (624 ) 6 8 (610 ) At 31 December 2015 (761 ) 10 (109 ) (860 ) Exchange movements on overseas net assets 633 13 603 1,249 At 31 December 2016 (128 ) 23 494 389 Exchange movements on overseas net assets 462 — (149 ) 313 Reclassification of exchange on liquidation or disposal of overseas subsidiaries 109 — — 109 At 31 December 2017 443 23 345 811 The analysis of other comprehensive income by equity category is as follows: Non- Retained Other controlling earnings reserves interests Total 2017 £m £m £m £m Items that may be subsequently reclassified to income statement: Exchange movements on overseas net assets and net investment hedges 462 — — 462 Reclassification of exchange on liquidation or disposal of overseas subsidiaries 109 — — 109 Fair value movements on available-for-sale — (14 ) — (14 ) Reclassification of fair value movements on available-for-sale — (42 ) — (42 ) Deferred tax on fair value movements on available-for-sale — 47 — 47 Deferred tax reversed on reclassification of available for sale investments — (18 ) — (18 ) Fair value movements on cash flow hedges — (10 ) — (10 ) Items that will not be reclassified to income statement: Exchange movements on overseas net assets of non-controlling — — (149 ) (149 ) Remeasurement gains on defined benefit plans 549 — — 549 Tax on remeasurement gains in defined benefit plans (221 ) — — (221 ) Other comprehensive income/(expense) for the year 899 (37 ) (149 ) 713 Non- Retained Other controlling earnings reserves interests Total 2016 £m £m £m £m Items that may be subsequently reclassified to income statement: Exchange movements on overseas net assets and net investment hedges 633 13 — 646 Fair value movements on available-for-sale — 251 — 251 Reclassification of fair value movements on available-for-sale — (245 ) — (245 ) Deferred tax reversed on reclassification of available-for-sale — 51 — 51 Reclassification of cash flow hedges to income statement — 1 — 1 Fair value movements on cash flow hedges — 2 — 2 Deferred tax on fair value movements on cash flow hedges — 2 — 2 Items that will not be reclassified to income statement: Exchange movements on overseas net assets of non-controlling — — 603 603 Remeasurement losses on defined benefit plans (475 ) — — (475 ) Tax on remeasurement losses in defined benefit plans 126 — — 126 Other comprehensive income for the year 284 75 603 962 Non- Retained Other controlling earnings reserves interests Total 2015 £m £m £m £m Items that may be subsequently reclassified to income statement: Exchange movements on overseas net assets and net investment hedges (624 ) 6 — (618 ) Fair value movements on available-for-sale — 416 — 416 Deferred tax on fair value movements on available-for-sale — (91 ) — (91 ) Reclassification of fair value movements on available-for-sale — (346 ) — (346 ) Deferred tax reversed on reclassification of available-for-sale — 36 — 36 Reclassification of cash flow hedges to income statement — 2 — 2 Fair value movements on cash flow hedges — 2 — 2 Share of other comprehensive expense of associates and joint ventures (77 ) — — (77 ) Items that will not be reclassified to income statement: Exchange movements on overseas net assets of non-controlling — — 8 8 Remeasurement gains on defined benefit plans 261 — — 261 Tax on remeasurement gains in defined benefit plans (80 ) — — (80 ) Other comprehensive (expense)/income for the year (520 ) 25 8 (487 ) |
Summary of Analysis of Other Reserves | The analysis of other reserves is as follows: ESOP Trust Fair value Cash flow Other shares reserve hedge reserve reserves Total £m £m £m £m £m At 1 January 2015 (151 ) 274 (13 ) 2,129 2,239 Transferred to income and expense in the year on disposals — (356 ) 2 — (354 ) Transferred to income and expense in the year on impairments — 10 — — 10 Net fair value movement in the year — 367 2 — 369 Ordinary shares acquired by ESOP Trusts (99 ) — — — (99 ) Write-down of shares held by ESOP Trusts 175 — — — 175 At 31 December 2015 (75 ) 295 (9 ) 2,129 2,340 Transferred to income and expense in the year on disposals (16 ) (268 ) — — (284 ) Transferred to income and expense in the year on impairments — 23 — — 23 Net fair value movement in the year — 330 6 — 336 Ordinary shares acquired by ESOP Trusts (576 ) — — — (576 ) Write-down of shares held by ESOP Trusts 381 — — — 381 At 31 December 2016 (286 ) 380 (3 ) 2,129 2,220 Transferred to income and expense in the year on disposals 22 (42 ) — — (20 ) Transferred to income and expense in the year on impairments — — — — — Net fair value movement in the year — (9 ) (8 ) — (17 ) Ordinary shares acquired by ESOP Trusts (656 ) — — — (656 ) Write-down of shares held by ESOP Trusts 520 — — — 520 At 31 December 2017 (400 ) 329 (11 ) 2,129 2,047 |
Adjustments reconciling profi83
Adjustments reconciling profit after tax to operating cash flows (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Cash Generated from Operations | 2017 2016 2015 £m £m £m Profit after tax 2,169 1,062 8,372 Tax on profits 1,356 877 2,154 Share of after tax profits of associates and joint ventures (13 ) (5 ) (14 ) Finance expense net of finance income 669 664 653 Depreciation 988 978 892 Amortisation of intangible assets 934 796 738 Impairment and assets written off 1,061 226 822 Profit on sale of businesses (157 ) (5 ) (9,308 ) Profit on sale of intangible assets (46 ) (178 ) (349 ) Profit on sale of investments in associates (94 ) — (843 ) Profit on sale of equity investments (37 ) (254 ) (342 ) Changes in working capital: (Increase)/decrease in inventories (461 ) 70 (111 ) (Increase)/decrease in trade receivables (287 ) (188 ) 98 Increase in trade payables 11 96 40 Decrease/(increase) in other receivables 74 381 (593 ) Contingent consideration paid (see Note 39) (594 ) (358 ) (121 ) Other non-cash 961 2,281 1,986 Increase in other payables 1,741 1,989 276 (Decrease)/increase in pension and other provisions (255 ) (621 ) 100 Share-based incentive plans 333 319 368 Fair value adjustments — (3 ) — Other (95 ) (21 ) (187 ) 6,089 7,044 (3,741 ) Cash generated from operations 8,258 8,106 4,631 |
Reconciliation of net cash fl84
Reconciliation of net cash flow to movement in net debt (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Net Debt | 2017 2016 2015 £m £m £m Net debt at beginning of year (13,804 ) (10,727 ) (14,377 ) (Decrease)/increase in cash and bank overdrafts (905 ) (1,164 ) 1,503 (Decrease)/increase in liquid investments (4 ) — 2 Net increase in long-term loans (2,233 ) — — Net repayment of/(increase in) short-term loans 3,200 (148 ) 2,412 Net repayment of obligations under finance leases 23 18 25 Exchange adjustments 585 (1,781 ) (268 ) Other non-cash (40 ) (2 ) (24 ) Movement in net debt 626 (3,077 ) 3,650 Net debt at end of year (13,178 ) (13,804 ) (10,727 ) |
Summary of Analysis of Changes in Net Debt | At 1 January Profit Reclass- At 31 December 2017 Exchange Other and loss ifications Disposals Cash flow 2017 Analysis of changes in net debt £m £m £m £m £m £m £m £m Liquid investments 89 (7 ) — — — — (4 ) 78 Cash and cash equivalents 4,897 (106 ) — — — (6 ) (952 ) 3,833 Overdrafts (292 ) 6 — — — — 53 (233 ) 4,605 (100 ) — — — (6 ) (899 ) 3,600 Debt due within one year: Commercial paper (1,094 ) 37 — — — — 528 (529 ) European and US Medium Term Notes (2,680 ) 121 — — (2,114 ) — 2,636 (2,037 ) Other (63 ) 2 (5 ) — (19 ) — 59 (26 ) (3,837 ) 160 (5 ) — (2,133 ) — 3,223 (2,592 ) Debt due after one year: European and US Medium Term Notes (14,620 ) 530 4 (16 ) 2,114 — (2,233 ) (14,221 ) Other (41 ) 2 (23 ) — 19 — — (43 ) (14,661 ) 532 (19 ) (16 ) 2,133 — (2,233 ) (14,264 ) Net debt (13,804 ) 585 (24 ) (16 ) — (6 ) 87 (13,178 ) Analysis of changes in liabilities from financing activities Debt due within one year (3,837 ) 160 (5 ) — (2,133 ) — 3,223 (2,592 ) Debt due after one year (14,661 ) 532 (19 ) (16 ) 2,133 — (2,233 ) (14,264 ) Hedge of borrowings: Derivative financial instruments (38 ) — 37 5 — — (2 ) 2 Other financing items — 91 — — — — (91 ) — Interest payable (158 ) 4 1 (731 ) (100 ) — 781 (203 ) Total liabilities from financing activities (18,694 ) 787 14 (742 ) (100 ) — 1,678 (17,057 ) |
Acquisitions and disposals (Tab
Acquisitions and disposals (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Profit on Disposal of Businesses | The profit on disposal was determined as follows: Total £m Consideration including currency forwards and purchase adjustments 342 Net assets sold: Goodwill (16 ) Intangible assets (21 ) Property, plant and equipment (18 ) Inventory (11 ) Cash and cash equivalents (6 ) Other net assets (5 ) (77 ) Transaction costs (8 ) Reclassification of exchange from other comprehensive income (100 ) Profit on disposal 157 Oncology Other £m £m Cash consideration including currency forwards and purchase adjustments 10,060 309 Net assets sold: Goodwill (497 ) (14 ) Intangible assets (516 ) (107 ) Property, plant and equipment — (25 ) Inventory — (51 ) Cash — (5 ) Other net assets — (6 ) (1,013 ) (208 ) Loss on currency forwards booked in 2014 299 — Disposal costs (118 ) (21 ) Profit on disposal 9,228 80 |
Summary of Investment in Associates and Joint Ventures | Total £m Cash consideration 198 Net book value of shares (92 ) Reclassification of exchange from other comprehensive income (7 ) Transaction costs (5 ) Profit on disposal 94 £m Cash consideration 571 Net book value of shares (143 ) Reclassification of exchange from other comprehensive income (30 ) Transaction fees (7 ) Other items (5 ) Profit on disposal 386 |
Summary of Cash Flows from Business Combinations | Cash flows Associates Associates Business and JV and JV disposals investments disposals £m £m £m Cash consideration 256 (15 ) 198 Net deferred consideration received 39 — — Cash and cash equivalents divested (6 ) — — Transaction costs paid (7 ) — (2 ) Cash inflow 282 (15 ) 196 Cash flows Business Business acquisitions disposals £m £m Cash consideration (paid)/received after purchase adjustments (24 ) 72 Cash and cash equivalents acquired 41 — Cash inflow 17 72 Cash flows Business Business Associates and Total Cash consideration (paid)/received after purchase adjustments (3,585 ) 10,369 571 7,355 Cash and cash equivalents acquired/(divested) 404 (5 ) — 399 Deferred cash proceeds — (38 ) — (38 ) Contingent consideration paid (338 ) — — (338 ) Transaction costs and other (22 ) (80 ) (7 ) (109 ) Cash (outflow)/inflow (3,541 ) 10,246 564 7,269 |
Summary of Fair Values of the Assets Acquired in Business Combinations, Including Goodwill | The fair values of the assets acquired in business combinations, including goodwill, are set out in the table below. Novartis Consumer Novartis Healthcare Vaccines business business Other £m £m £m Net assets acquired: Intangible assets 6,003 2,680 124 Property, plant and equipment 249 434 1 Inventory 257 347 — Trade and other receivables 400 162 2 Other assets including cash and cash equivalents 304 283 19 Trade and other payables (402 ) (107 ) (3 ) Deferred tax liabilities (1,154 ) (78 ) (26 ) Other liabilities (165 ) (299 ) — 5,492 3,422 117 Non-controlling (2,150 ) (19 ) — Goodwill 774 576 22 4,116 3,979 139 Consideration settled by shares in GSK Consumer Healthcare Holdings 4,116 — — Cash consideration paid after purchase adjustments — 3,461 124 Fair value of equity investment disposal — — 15 Contingent consideration — 594 — Deferred tax on contingent consideration — (52 ) — Loss on settlement of pre-existing — (24 ) — Total consideration 4,116 3,979 139 |
Contingent consideration liab86
Contingent consideration liabilities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Summary of Fair Value of Contingent Consideration | The consideration for certain acquisitions includes amounts contingent on future events such as development milestones or sales performance. The Group has provided for the fair value of this contingent consideration as follows: Shionogi- Novartis Other Total At 1 January 2015 1,684 — 40 1,724 Additions through business combinations — 594 — 594 Remeasurement through income statement 1,874 111 1 1,986 Cash payments: operating cash flows (121 ) — — (121 ) Cash payments: investing activities (38 ) (300 ) — (338 ) Other movements 10 — — 10 At 31 December 2015 3,409 405 41 3,855 Additions through business combinations 154 — 40 194 Remeasurement through income statement 2,162 152 (33 ) 2,281 Cash payments: operating cash flows (351 ) (5 ) (2 ) (358 ) Cash payments: investing activities (66 ) (7 ) — (73 ) Other movements (4 ) — 1 (3 ) At 31 December 2016 5,304 545 47 5,896 Remeasurement through income statement 909 53 (1 ) 961 Cash payments: operating cash flows (587 ) (7 ) — (594 ) Cash payments: investing activities (84 ) (7 ) — (91 ) At 31 December 2017 5,542 584 46 6,172 |
Summary of Possible Changes in key Inputs to Valuation of Contingent Consideration Liabilities | The table below shows on an indicative basis the income statement and balance sheet sensitivity to reasonably possible changes in key inputs to the valuations of the contingent consideration liabilities. Increase/(decrease) in financial liability and loss/(gain) in Income statement Shionogi- Novartis 10% increase in sales forecasts 535 56 10% decrease in sales forecasts (535 ) (55 ) 1% increase in discount rate (228 ) (18 ) 1% decrease in discount rate 245 20 5% increase in probability of milestone success 6 5% decrease in probability of milestone success (6 ) 10 cent appreciation of US Dollar 329 17 10 cent depreciation of US Dollar (284 ) (15 ) 10 cent appreciation of Euro 95 25 10 cent depreciation of Euro (80 ) (21 ) |
Non-controlling interests (Tabl
Non-controlling interests (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
ViiV healthcare [member] | |
Summarised Financial Information of ViiV Healthcare Group and GSK Consumer Healthcare Joint Venture | Summarised financial information in respect of the ViiV Healthcare group and GSK Consumer Healthcare Joint Venture is set out below: ViiV Healthcare 2017 2016 2015 Turnover 4,269 3,527 2,330 Profit/(loss) after taxation 825 (1,249 ) (1,426 ) Other comprehensive income 20 36 7 Total comprehensive income/(expense) 845 (1,213 ) (1,419 ) 2017 £m 2016 Non-current 2,736 3,064 Current assets 2,533 2,357 Total assets 5,269 5,421 Current liabilities (2,409 ) (1,977 ) Non-current (8,011 ) (7,983 ) Total liabilities (10,420 ) (9,960 ) Net liabilities (5,151 ) (4,539 ) 2017 2016 2015 Net cash inflow from operating activities 2,132 1,750 1,097 Net cash outflow from investing activities (207 ) (326 ) (63 ) Net cash outflow from financing activities (1,820 ) (1,023 ) (814 ) Increase in cash and bank overdrafts in the year 105 401 220 |
Schedule of Amount Attributable to VIIV Healthcare Group Included in GSK's Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Balance Shee | The following amounts attributable to the ViiV Healthcare group are included in GSK’s Consolidated statement of comprehensive income, Consolidated statement of changes in equity and Consolidated balance sheet: 2017 2016 2015 Total comprehensive income/(expense) for the year attributable to non-controlling 187 (83 ) (143 ) Dividends paid to non-controlling 316 152 163 Non-controlling (476 ) (353 ) |
Consumer health care joint venture [member] | |
Summarised Financial Information of ViiV Healthcare Group and GSK Consumer Healthcare Joint Venture | Consumer Healthcare Joint Venture 2017 £m 2016 2015 Turnover 7,003 6,530 4,627 Profit/(loss) after taxation 1,211 660 (39 ) Other comprehensive income (387 ) 1,640 72 Total comprehensive income 824 2,300 33 2017 £m 2016 Non-current 12,771 13,315 Current assets 3,282 3,996 Total assets 16,053 17,311 Current liabilities (2,675 ) (3,060 ) Non-current (1,537 ) (2,062 ) Total liabilities (4,212 ) (5,122 ) Net assets 11,841 12,189 2017 £m 2016 2015 Net cash inflow from operating activities 883 1,496 277 Net cash inflow/(outflow) from investing activities 270 (537 ) (691 ) Net cash outflow from financing activities (1,194 ) (980 ) (42 ) Decrease in cash and bank overdrafts in the year (41 ) (21 ) (456 ) |
Schedule of Amount Attributable to VIIV Healthcare Group Included in GSK's Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Balance Shee | The following amounts attributable to the Consumer Healthcare Joint Venture are included in GSK’s Consolidated statement of comprehensive income, Consolidated statement of changes in equity and Consolidated balance sheet: 2017 2016 2015 £m £m £m Total comprehensive income for the year attributable to non-controlling 296 730 14 Dividends paid to non-controlling 420 346 — Non-controlling 3,631 3,755 |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Contractual Obligations and Commitments | 2017 2016 Contractual obligations and commitments £m £m Contracted for but not provided in the financial statements: Intangible assets 5,254 7,199 Property, plant and equipment 584 496 Investments 107 166 Purchase commitments 346 52 Pensions 738 874 Other commitments 38 143 Interest on loans 8,510 9,410 Finance lease charges 12 3 15,589 18,343 |
Summary of Commitments Under Non-Cancellable Operating Leases | Commitments under non-cancellable 2017 2016 Commitments under non-cancellable £m £m Rental payments due within one year 186 153 Rental payments due between one and two years 149 129 Rental payments due between two and three years 122 94 Rental payments due between three and four years 107 74 Rental payments due between four and five years 94 66 Rental payments due after five years 387 324 Total commitments under non-cancellable 1,045 840 |
Financial instruments and rel89
Financial instruments and related disclosures (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Summary of External Credit Exposure | These banks are used for local investment purposes. 2017 AAA/Aaa AA/Aa A/A BBB/Baa BB+/Ba1 Total Bank balances and deposits — 423 1,167 80 45 1,715 US Treasury and Treasury repo only money market funds 1,715 — — — — 1,715 Liquidity funds 403 — — — — 403 Government securities — 77 — 1 — 78 3rd party financial derivatives — 26 42 — — 68 Total 2,118 526 1,209 81 45 3,979 2016 AAA/Aaa AA/Aa A/A BBB/Baa BB+/Ba1 Total Bank balances and deposits — 542 1,560 388 93 2,583 US Treasury and Treasury repo only money market funds 2,248 — — — — 2,248 Liquidity funds 66 — — — — 66 Government securities — 85 — 4 — 89 3rd party financial derivatives — 70 86 — — 156 Total 2,314 697 1,646 392 93 5,142 |
Summary of Financial Assets and Liabilities | 2017 2016 Notes Carrying Fair Carrying Fair Available-for-sale Liquid investments (Government bonds) a 78 78 89 89 Other investments a 918 918 985 985 Loans and receivables: Cash and cash equivalents 3,833 3,833 4,897 4,897 Trade and other receivables and Other non-current b 5,495 5,495 5,499 5,499 Financial assets at fair value through profit or loss: Trade and other receivables and Other non-current a,b 506 506 361 361 Derivatives designated as at fair value through profit or loss a,d,e 5 5 23 23 Derivatives classified as held for trading under IAS 39 a,d,e 71 71 133 133 Total financial assets 10,906 10,906 11,987 11,987 Financial liabilities measured at amortised cost: Borrowings excluding obligations under finance leases: – bonds in a designated hedging relationship d (4,315 ) (4,405 ) (3,189 ) (3,335 ) – other bonds (11,894 ) (14,743 ) (14,111 ) (16,996 ) – bank loans and overdrafts (236 ) (236 ) (332 ) (332 ) – commercial paper (529 ) (529 ) (1,094 ) (1,094 ) – other borrowings (49 ) (49 ) — — Total borrowings excluding obligations under finance leases f (17,023 ) (19,962 ) (18,726 ) (21,757 ) Obligations under finance leases (66 ) (66 ) (64 ) (64 ) Total borrowings (17,089 ) (20,028 ) (18,790 ) (21,821 ) Trade and other payables, Other provisions and certain Other non-current c (20,325 ) (20,325 ) (18,713 ) (18,713 ) Financial liabilities at fair value through profit or loss: Contingent consideration liabilities a,c (6,172 ) (6,172 ) (5,896 ) (5,896 ) Derivatives designated as at fair value through profit or loss a,d,e (26 ) (26 ) (92 ) (92 ) Derivatives classified as held for trading under IAS 39 a,d,e (48 ) (48 ) (102 ) (102 ) Total financial liabilities (43,660 ) (46,599 ) (43,593 ) (46,624 ) Net financial assets and financial liabilities (32,754 ) (35,693 ) (31,606 ) (34,637 ) |
Summary of Fair Value of Financial Instruments | Level 1 Level 2 Level 3 Total At 31 December 2017 £m £m £m £m Financial assets at fair value Available–for–sale financial assets: Liquid investments 77 1 — 78 Other investments 535 — 383 918 Other non-current — — 38 38 Financial assets at fair value through profit or loss: Other non-current — 382 44 426 Trade and other receivables — — 42 42 Derivatives designated as at fair value through profit or loss — 5 — 5 Derivatives classified as held for trading under IAS 39 — 62 9 71 612 450 516 1,578 Financial liabilities at fair value Financial liabilities at fair value through profit or loss: Contingent consideration liabilities — — (6,172 ) (6,172 ) Derivatives designated as at fair value through profit or loss — (26 ) — (26 ) Derivatives classified as held for trading under IAS 39 — (47 ) (1 ) (48 ) — (73 ) (6,173 ) (6,246 ) Level 1 Level 2 Level 3 Total At 31 December 2016 £m £m £m £m Financial assets at fair value Available–for–sale financial assets: Liquid investments 84 5 — 89 Other investments 580 — 405 985 Other non-current — — 6 6 Financial assets at fair value through profit or loss: Other non-current — 355 — 355 Derivatives designated as at fair value through profit or loss — 23 — 23 Derivatives classified as held for trading under IAS 39 — 133 — 133 664 516 411 1,591 Financial liabilities at fair value Financial liabilities at fair value through profit or loss: Contingent consideration liabilities — — (5,896 ) (5,896 ) Derivatives designated as at fair value through profit or loss — (92 ) — (92 ) Derivatives classified as held for trading under IAS 39 — (101 ) (1 ) (102 ) — (193 ) (5,897 ) (6,090 ) |
Summary of Financial and Non Financial Assets | 2017 2016 At fair value Loans and Financial Non- Total At fair value Loans and Financial Non- Total Trade and other receivables (Note 24) 42 5,148 5,190 810 6,000 — 5,135 5,135 891 6,026 Other non-current 464 347 811 602 1,413 361 364 725 474 1,199 506 5,495 6,001 1,412 7,413 361 5,499 5,860 1,365 7,225 |
Summary of Ageing of Financial Assets Which are Past Due and for Which No Provision for Bad or Doubtful Debts Has Been Made | The following table shows the ageing of such financial assets which are past due and for which no provision for bad or doubtful debts has been made: 2017 2016 Past due by 1–30 days 142 137 Past due by 31–90 days 70 178 Past due by 91–180 days 64 55 Past due by 181–365 days 27 53 Past due by more than 365 days 108 98 411 521 |
Reconciliation of Financial Instruments Within Trade and Other Payables, Other Provisions, Other Non-current Liabilities and Contingent Consideration Liabilities | 2017 2016 At fair value At fair value through Other Financial Non-financial through Other Financial Non-financial profit or loss liabilities instruments instruments Total profit or loss liabilities instruments instruments Total £m £m £m £m £m £m £m £m £m £m Trade and other payables (Note 27) — (20,129 ) (20,129 ) (841 ) (20,970 ) — (11,041 ) (11,041 ) (923 ) (11,964 ) Other provisions (Note 29) — (117 ) (117 ) (1,148 ) (1,265 ) — (113 ) (113 ) (1,387 ) (1,500 ) Other non-current — (79 ) (79 ) (902 ) (981 ) — (7,559 ) (7,559 ) (886 ) (8,445 ) Contingent consideration liabilities (Note 39) (6,172 ) — (6,172 ) — (6,172 ) (5,896 ) — (5,896 ) — (5,896 ) (6,172 ) (20,325 ) (26,497 ) (2,891 ) (29,388 ) (5,896 ) (18,713 ) (24,609 ) (3,196 ) (27,805 ) |
Summary of Fair Values of Derivatives Held | 2017 Fair value 2016 Assets Liabilities Assets Liabilities Net investment hedges – Foreign exchange contracts (principal amount – £6,333 million (2016 – £5,362 million)) 5 (25 ) 18 (92 ) Cash flow hedges – Foreign exchange contracts (principal amount – £38 million (2016 – £170 million)) — (1 ) 5 — Derivatives designated as at fair value through profit or loss 5 (26 ) 23 (92 ) Foreign exchange contracts (principal amount – £14,449 million (2016 – £14,943 million)) 62 (47 ) 133 (99 ) Embedded and other derivatives 9 (1 ) — (3 ) Derivatives classified as held for trading under IAS 39 71 (48 ) 133 (102 ) Total derivative instruments 76 (74 ) 156 (194 ) |
Summary of Offsetting of Financial Assets and Liabilities | he following tables set out the financial assets and liabilities that are offset, or subject to enforceable master netting arrangements and other similar agreements but not offset, as at 31 December 2017 and 31 December 2016. The column ‘Net amount’ shows the impact on the Group’s balance sheet if all offset rights were exercised. At 31 December 2017 Gross Financial Net financial £m Related Net Financial assets Trade and other receivables 5,191 (1 ) 5,190 (31 ) 5,159 Derivative financial instruments 76 — 76 (64 ) 12 Financial liabilities Trade and other payables (20,130 ) 1 (20,129 ) 31 (20,098 ) Derivative financial instruments (74 ) — (74 ) 64 (10 ) At 31 December 2016 Gross Financial Net financial Related Net Financial assets Trade and other receivables 5,136 (1 ) 5,135 (29 ) 5,106 Derivative financial instruments 156 — 156 (117 ) 39 Financial liabilities Trade and other payables (11,042 ) 1 (11,041 ) 29 (11,012 ) Derivative financial instruments (194 ) — (194 ) 117 (77 ) |
Summary of Debt Interest Rate Repricing | The following table sets out the exposure of the Group to interest rates on debt, including commercial paper. The maturity analysis of fixed rate debt is stated by contractual maturity and of floating rate debt by interest rate repricing dates. For the purpose of this table, debt is defined as all classes of borrowings other than obligations under finance leases. 2017 2016 Total debt £m Total Floating and fixed rate debt less than one year (2,802 ) (4,106 ) Between one and two years (1,340 ) (2,216 ) Between two and three years (1,076 ) (1,277 ) Between three and four years (16 ) — Between four and five years (1,475 ) — Between five and ten years (3,664 ) (4,082 ) Greater than ten years (6,650 ) (7,045 ) Total (17,023 ) (18,726 ) Original issuance profile: Fixed rate interest (16,209 ) (17,342 ) Floating rate interest (765 ) (1,381 ) Total interest bearing (16,974 ) (18,723 ) Non-interest (49 ) (3 ) (17,023 ) (18,726 ) |
Summary of Anticipated Contractual Cash Flows Including Interest Payable for the Non-Derivative Financial Liabilities on Undiscounted Basis | Obligations Finance charge on Trade payables and Interest on under finance obligations under other liabilities not Debt debt leases finance leases in net debt Total At 31 December 2017 £m £m £m £m £m £m Due in less than one year (2,802 ) (555 ) (23 ) (2 ) (21,521 ) (24,903 ) Between one and two years (1,344 ) (497 ) (27 ) (2 ) (853 ) (2,723 ) Between two and three years (1,078 ) (488 ) (8 ) (1 ) (813 ) (2,388 ) Between three and four years (16 ) (488 ) (2 ) (1 ) (784 ) (1,291 ) Between four and five years (1,483 ) (468 ) (1 ) (1 ) (752 ) (2,705 ) Between five and ten years (3,694 ) (2,018 ) (5 ) (5 ) (3,609 ) (9,331 ) Greater than ten years (6,720 ) (3,996 ) — — (1,471 ) (12,187 ) Gross contractual cash flows (17,137 ) (8,510 ) (66 ) (12 ) (29,803 ) (55,528 ) Finance charge on Trade payables and Obligations obligations other Interest on under finance under finance liabilities not Debt debt leases leases in net debt Total At 31 December 2016 £m £m £m £m £m £m Due in less than one year (4,108 ) (705 ) (23 ) (2 ) (11,621 ) (16,459 ) Between one and two years (2,218 ) (566 ) (22 ) (1 ) (8,784 ) (11,591 ) Between two and three years (1,282 ) (503 ) (12 ) — (961 ) (2,758 ) Between three and four years — (496 ) (7 ) — (786 ) (1,289 ) Between four and five years — (496 ) — — (705 ) (1,201 ) Between five and ten years (4,117 ) (2,122 ) — — (3,474 ) (9,713 ) Greater than ten years (7,124 ) (4,522 ) — — (3,135 ) (14,781 ) Gross contractual cash flows (18,849 ) (9,410 ) (64 ) (3 ) (29,466 ) (57,792 ) |
Summary of Anticipated Contractual Cash Flows for Derivative Instruments, Excluding Embedded Derivatives and Equity Options, Using Undiscounted Cash Flows | The amounts receivable and payable in less than one year have decreased compared with 31 December 2016 as a result of reduced hedging of the US commercial paper programme. 2017 2016 Receivables Payables Receivables Payables £m £m £m £m Due in less than one year 20,319 (20,326 ) 21,266 (21,303 ) Between one and two years — — 20 (20 ) Gross contractual cash flows 20,319 (20,326 ) 21,286 (21,323 ) |
Currency risk [member] | |
Sensitivity Analysis for Each Type of Market Risk | 2017 2016 Income statement impact of non-functional Increase/(decrease) in £m Increase/(decrease) in 10 cent appreciation of the US Dollar 76 77 10 cent appreciation of the Euro (5 ) 18 10 yen appreciation of the Yen 9 1 2017 2016 Income statement impact of non-functional Increase/(decrease) in £m Increase/(decrease) in 10 cent depreciation of the US Dollar (66 ) (66 ) 10 cent depreciation of the Euro 4 (16 ) 10 yen depreciation of the Yen (8 ) (1 ) The equity impact, shown below, for foreign exchange sensitivity relates to derivative and non-derivative 2017 2016 Equity impact of non-functional Increase/(decrease) £m Increase/(decrease) 10 cent appreciation of the US Dollar 1 11 10 cent appreciation of the Euro (1,028 ) (795 ) 2017 2016 Equity impact of non-functional Increase/(decrease) £m Increase/(decrease) 10 cent depreciation of the US Dollar (1 ) (10 ) 10 cent depreciation of the Euro 861 670 The tables below present the Group’s sensitivity to a weakening and strengthening of Sterling against the relevant currency based on the composition of net debt as shown in Note 31 adjusted for the effects of foreign exchange derivatives that are not part of net debt but affect future foreign currency cash flows. 2017 2016 Impact of foreign exchange movements on net debt (Increase)/decrease in net debt £m (Increase)/decrease 10 cent appreciation of the US Dollar (637 ) (746 ) 10 cent appreciation of the Euro 197 190 10 yen appreciation of the Yen (4 ) (11 ) 2017 2016 Impact of foreign exchange movements on net debt (Increase)/decrease in net debt £m (Increase)/decrease 10 cent depreciation of the US Dollar 549 634 10 cent depreciation of the Euro (165 ) (160 ) 10 yen depreciation of the Yen 4 10 |
Interest rate risk [member] | |
Sensitivity Analysis for Each Type of Market Risk | The table below hypothetically shows the Group’s sensitivity to changes in interest rates in relation to Sterling, US Dollar and Euro floating rate financial assets and liabilities. If the interest rates applicable to floating rate financial assets and liabilities were to have increased by 1% (100 basis points), and assuming other variables had remained constant, it is estimated that the Group’s finance income for 2017 would have increased by approximately £5 million (2016 – £3 million increase). A 1% (100 basis points) movement in interest rates is not deemed to have a material effect on equity. 2017 2016 Income statement impact of interest rate movements Increase/(decrease) £m Increase/(decrease) 1% (100 basis points) increase in Sterling interest rates 24 3 1% (100 basis points) increase in US Dollar interest rates (24 ) (3 ) 1% (100 basis points) increase in Euro interest rates 5 3 |
Level 3 [member] | |
Summary of Fair Value of Financial Instruments | Movements in the year for financial instruments measured using Level 3 valuation methods are presented below: 2017 2016 £m £m At 1 January (5,486 ) (3,582 ) Net losses recognised in the income statement (970 ) (2,283 ) Net gains recognised in other comprehensive income 22 29 Contingent consideration for businesses divested/acquired during the year 80 (194 ) Payment of contingent consideration liabilities 685 431 Additions 117 81 Disposals (52 ) (15 ) Transfers from Level 3 (24 ) (11 ) Exchange (29 ) 58 At 31 December (5,657 ) (5,486 ) |
Employee share schemes (Tables)
Employee share schemes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Number of Shares and ADS Issuable | Shares Weighted ADS Weighted Number of shares and ADS issuable Number (000) fair value Number (000) fair value At 1 January 2015 32,912 21,227 Awards granted 13,019 £ 11.57 7,198 $ 35.66 Awards exercised (11,476 ) (8,878 ) Awards cancelled (1,878 ) (2,027 ) At 31 December 2015 32,577 17,520 Awards granted 12,983 £ 14.97 6,589 $ 39.18 Awards exercised (11,198 ) (6,214 ) Awards cancelled (1,507 ) (812 ) At 31 December 2016 32,855 17,083 Awards granted 13,018 £ 13.68 6,610 $ 35.63 Awards exercised (10,596 ) (5,674 ) Awards cancelled (1,352 ) (627 ) At 31 December 2017 33,925 17,392 |
Summary of Valuation Model Used to Valuing Saving - Related Option to Arrive at the Share Based Payment Charge | The assumptions used in the model are as follows: 2017 Grant 2016 Grant 2015 Grant Risk-free interest rate 0.54 % 0.32 % 0.88 % Dividend yield 5.9 % 4.9 % 6.5 % Volatility 23 % 23 % 21 % Expected life 3 years 3 years 3 years Savings-related options grant price (including 20% discount) £ 10.86 £ 12.95 £ 10.14 |
Summary of Option Outstanding | Share option Share option Savings-related Options outstanding schemes – shares schemes – ADS share option schemes Weighted Weighted Weighted Number exercise Number exercise Number exercise 000 price 000 price 000 price At 31 December 2017 3,600 £ 11.86 3,277 $ 39.62 6,852 £ 10.77 Range of exercise prices on options outstanding at year end £ 11.47 – £ 12.21 $ 33.42 – $ 48.66 £ 10.13 – £ 12.95 Weighted average market price on exercise during year £ 16.07 $ 41.50 £ 14.28 Weighted average remaining contractual life 1.4 years 1.0 years 2.1 years |
Summary of Shares Held for Share Award Schemes | Shares held for share award schemes 2017 2016 Number of shares (000) 66,558 42,571 £m £m Nominal value 17 11 Carrying value 399 285 Market value 880 665 Shares held for share option schemes 2017 2016 Number of shares (000) 139 139 £m £m Nominal value — — Carrying value 1 1 Market value 2 2 |
Principal Group companies (Tabl
Principal Group companies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Text block1 [abstract] | |
Schedule of Principal Subsidiaries and Their Countries of Incorporation | The following represent the principal subsidiaries and their countries of incorporation of the Group at 31 December 2017. The equity share capital of these entities is wholly owned by the Group except where its percentage interest is shown otherwise. All companies are incorporated in their principal country of operation except where stated. England US Glaxo Group Limited Block Drug Company, Inc. (63.5%) Glaxo Operations UK Limited Corixa Corporation GlaxoSmithKline Capital plc GlaxoSmithKline Capital Inc. GlaxoSmithKline Consumer Healthcare Holdings Limited (63.5%) GlaxoSmithKline Consumer Healthcare, L.P. (55.9%) GlaxoSmithKline Consumer Healthcare (UK) Trading Limited (63.5%) GlaxoSmithKline Holdings (Americas) Inc. GlaxoSmithKline Export Limited GlaxoSmithKline LLC GlaxoSmithKline Finance plc Human Genome Sciences, Inc. GlaxoSmithKline Holdings Limited * GSK Consumer Health, Inc. (formerly Novartis Consumer Health, Inc.) (63.5%) GlaxoSmithKline Research & Development Limited S.R. One, Limited GlaxoSmithKline Services Unlimited * Stiefel Laboratories, Inc. GlaxoSmithKline UK Limited ViiV Healthcare Company (78.3%) Setfirst Limited SmithKline Beecham Limited ViiV Healthcare Limited (78.3%) ViiV Healthcare UK Limited (78.3%) Europe Others GlaxoSmithKline Biologicals SA (Belgium) GlaxoSmithKline Argentina S.A. (Argentina) GlaxoSmithKline Pharmaceuticals SA (Belgium) GlaxoSmithKline Australia Pty Ltd (Australia) GlaxoSmithKline Biologicals S.A.S. (France) GlaxoSmithKline Consumer Healthcare Australia Pty Ltd (Australia) (63.5%) GlaxoSmithKline Sante Grand Public SAS (France) (63.5%) GlaxoSmithKline Brasil Limitada (Brazil) Laboratoire GlaxoSmithKline (France) GlaxoSmithKline Consumer Healthcare Inc. (Canada) (63.5%) ViiV Healthcare SAS (France) (78.3%) GlaxoSmithKline Inc. (Canada) GlaxoSmithKline Consumer Healthcare GmbH & Co. KG ID Biomedical Corporation of Quebec (Canada) (Germany) (63.5%) GlaxoSmithKline Limited (China (Hong Kong)) GlaxoSmithKline GmbH & Co. KG (Germany) Sino-American Tianjin Smith Kline & French Laboratories Ltd (China) (34.9%) GSK Vaccines GmbH (Germany) GlaxoSmithKline Consumer Healthcare Limited (India) (72.5%) GlaxoSmithKline Consumer Healthcare S.p.A. (Italy) (63.5%) GlaxoSmithKline Pharmaceuticals Limited (India) (75%) GlaxoSmithKline S.p.A. (Italy) GlaxoSmithKline Consumer Healthcare Japan K.K. (Japan) (63.5%) GSK Vaccines S.r.l. (Italy) GlaxoSmithKline K.K. (Japan) GlaxoSmithKline B.V. (Netherlands) ViiV Healthcare Kabushiki Kaisha (Japan) (78.3%) GlaxoSmithKline Consumer Healthcare Sp.z.o.o. (Poland) (63.5%) GlaxoSmithKline Pakistan Limited (Pakistan) (82.6%) GlaxoSmithKline Pharmaceuticals S.A. (Poland) Glaxo Wellcome Manufacturing Pte Ltd. (Singapore) GSK Services Sp z o.o. (Poland) GlaxoSmithKline Korea Limited (Republic of Korea) GlaxoSmithKline Trading Services Limited (Republic of Ireland) (i) GlaxoSmithKline llaclari Sanayi ve Ticaret A.S. (Turkey) GlaxoSmithKline Healthcare AO (Russia) (63.5%) GlaxoSmithKline S.A. (Spain) Laboratorios ViiV Healthcare, S.L. (Spain) (78.3%) Novartis Consumer Health S.A. (Switzerland) (63.5%) (i) Exempt from the provisions of section 347 and 348 of the Companies Act 2014 (Ireland), in accordance with the exemptions noted in Section 357 of that Act. Further subsidiaries, as disclosed on pages 276 to 286, are exempt from these provisions as they are also consolidated in the group financial statements. * Directly held wholly owned subsidiary of GlaxoSmithKline plc. |
Presentation of the Financial92
Presentation of the Financial Statements - Additional Information (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Presentation Of The Financial Statements [Abstract] | |
Date of end of reporting period | Dec. 31, 2017 |
Period covered by financial statements | These financial statements cover the financial year from 1 January to 31 December 2017, with comparative figures for the financial years from 1 January to 31 December 2016 and, where appropriate, from 1 January to 31 December 2015. |
Interest on tax | £ 24 |
Accrued interest payable on tax | £ 52 |
Accounting Principles and Pol93
Accounting Principles and Policies - Additional Information (Detail) - GBP (£) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of accounting principles and policies [line items] | |||
Cost of sales | £ 0 | ||
Co-promotion revenue | 16,000,000 | £ 9,000,000 | £ 14,000,000 |
Milestone income | 0 | £ 0 | £ 0 |
Provisions related to legal and other disputes | £ 0 | ||
Amortised brands [member] | Top of range [member] | |||
Disclosure of accounting principles and policies [line items] | |||
Estimated useful lives | 20 years | ||
ERP software systems [member] | Top of range [member] | |||
Disclosure of accounting principles and policies [line items] | |||
Estimated useful lives | Ten years | ||
ERP software systems [member] | Bottom of range [member] | |||
Disclosure of accounting principles and policies [line items] | |||
Estimated useful lives | Seven years | ||
Computer software [member] | Top of range [member] | |||
Disclosure of accounting principles and policies [line items] | |||
Estimated useful lives | Five years | ||
Computer software [member] | Bottom of range [member] | |||
Disclosure of accounting principles and policies [line items] | |||
Estimated useful lives | Three years | ||
Licences and franchises [member] | Top of range [member] | |||
Disclosure of accounting principles and policies [line items] | |||
Estimated useful lives | 20 years |
Accounting Principles and Pol94
Accounting Principles and Policies - Summary of Expected Useful Lives of Property Plant and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Freehold buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives of property plant and equipment | 20 to 50 years |
Leasehold land and buildings [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives of property plant and equipment | Lease term or 20 to 50 years |
Plant and machinery [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives of property plant and equipment | 10 to 20 years |
Equipment and vehicles [member] | |
Disclosure of detailed information about property, plant and equipment [line items] | |
Useful lives of property plant and equipment | 3 to 10 years |
Key Accounting Judgements and95
Key Accounting Judgements and Estimates - Additional Information (Detail) - GBP (£) | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of changes in accounting estimates [line items] | ||||
Turnover | £ 30,186,000,000 | £ 27,889,000,000 | £ 23,923,000,000 | |
Tax charge for the year | 1,356,000,000 | 877,000,000 | 2,154,000,000 | |
Tax payable, current | 995,000,000 | 1,305,000,000 | ||
Tax recoverable, current | 258,000,000 | 226,000,000 | ||
Deferred tax liability | 1,396,000,000 | 1,934,000,000 | ||
Deferred tax assets | 3,796,000,000 | 4,374,000,000 | ||
Tax payable, non-current | £ 411,000,000 | 0 | ||
Effective tax rate | 1.00% | |||
Changed total tax charge | £ 35,000,000 | |||
Uncertain tax position charge | 1,175,000,000 | 1,892,000,000 | ||
Legal costs | 166,000,000 | 162,000,000 | ||
Provision for legal and other disputes | 186,000,000 | 344,000,000 | ||
Other intangible assets | 17,562,000,000 | 18,776,000,000 | 16,672,000,000 | |
Contingent consideration and put option liabilities | (2,134,000,000) | (3,991,000,000) | ||
Contingent consideration related to acquisition | £ 6,172,000,000 | 5,896,000,000 | 3,855,000,000 | £ 1,724,000,000 |
Percentage of decrease in discount rate | 0.25% | |||
Net pension deficit | £ 800,000,000 | |||
Increased annual pension cost | 29,000,000 | |||
Shionogi ViiV healthcare joint venture [member] | Trade and other payable [member] | Written put options [member] | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Put option recognised | 1,304,000,000 | |||
Shionogi ViiV healthcare joint venture [member] | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Contingent consideration related to acquisition | 5,542,000,000 | 5,304,000,000 | £ 3,409,000,000 | £ 1,684,000,000 |
Business combinations [member] | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Contingent consideration liabilities | 6,172,000,000 | 5,896,000,000 | ||
Novartis [member] | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Contingent consideration related to acquisition | £ 584,000,000 | 545,000,000 | ||
Percentage of voting right | 36.50% | |||
Novartis [member] | Other noncurrent liabilities [member] | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Financial liability recognised | £ 8,606,000,000 | 7,420,000,000 | ||
Pfizer [member] | Shionogi ViiV healthcare joint venture [member] | Written put options [member] | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Put option recognised during year | 1,070,000,000 | |||
Pfizer [member] | Shionogi ViiV healthcare joint venture [member] | Trade and other payable [member] | Written put options [member] | ||||
Disclosure of changes in accounting estimates [line items] | ||||
Put option recognised | £ 1,319,000,000 |
New Accounting Requirements - A
New Accounting Requirements - Additional Information (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Description Of New Accounting Requirements [Line Items] | |
IFRS 15, description | IFRS 15 'Revenue from contracts with customers' was issued in May 2014 and has been implemented by the Group from 1 January 2018. The Standard provides a single, principles-based approach to the recognition of revenue from all contracts with customers. It focuses on the identification of performance obligations in a contract and requires revenue to be recognised when or as those performance obligations are satisfied. |
IFRS 9, description | IFRS 9 'Financial instruments' was issued in its final form in July 2014 and has been implemented by the Group from 1 January 2018. The Standard replaces the majority of IAS 39 and covers the classification, measurement and de-recognition of financial assets and financial liabilities, introduces a new impairment model for financial assets based on expected losses rather than incurred losses and provides a new hedge accounting model. |
IFRS 16, description | IFRS 16 'Leases' was issued in January 2016 and will be implemented by the Group from 1 January 2019. The Standard will replace IAS 17 'Leases' and will require lease liabilities and 'right of use' assets to be recognised on the balance sheet for almost all leases. |
Effect of overlay approach reclassification [member] | |
Description Of New Accounting Requirements [Line Items] | |
Cumulative adjustment increase decrease to equity | £ 11 |
Increase (decrease) due to application of IFRS 15 [member] | |
Description Of New Accounting Requirements [Line Items] | |
Cumulative adjustment increase decrease to equity | £ 4 |
Exchange Rates - Summary of Cur
Exchange Rates - Summary of Currencies Translations and Relevant Exchange Rates (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
USD [member] | |||
Disclosure of foreign exchange rates [line items] | |||
Average rates | 1.30 | 1.36 | 1.53 |
Period end rates | 1.35 | 1.24 | 1.47 |
Euro [member] | |||
Disclosure of foreign exchange rates [line items] | |||
Average rates | 1.15 | 1.23 | 1.37 |
Period end rates | 1.13 | 1.17 | 1.36 |
Yen [member] | |||
Disclosure of foreign exchange rates [line items] | |||
Average rates | 145 | 149 | 185 |
Period end rates | 152 | 144 | 177 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017GBP (£)SegmentsWholesalers | Dec. 31, 2016GBP (£) | Dec. 31, 2015GBP (£) | |
Disclosure of operating segments [line items] | |||
Number of reportable operating segments | Segments | 4 | ||
Description of factors used to identify entity's reportable segments | Operating segments are reported based on the financial information provided to the Chief Executive Officer and the responsibilities of the Corporate Executive Team (CET). GSK reports results under four segments Pharmaceuticals; Pharmaceuticals R&D; Vaccines and Consumer Healthcare, and individual members of the CET are responsible for each segment. | ||
Turnover | £ 30,186 | £ 27,889 | £ 23,923 |
Total impairment | 1,069 | 289 | 587 |
Shionogi-ViiV Healthcare [member] | |||
Disclosure of operating segments [line items] | |||
Contingent consideration liability | 5,542 | 5,304 | |
Pfizer put option | 1,304 | 1,319 | |
Consumer Healthcare [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | 7,750 | 7,193 | 6,038 |
Put option liability | 8,606 | 7,420 | |
Other Reconciling Items between Segment Profit and Operating Profit [member] | |||
Disclosure of operating segments [line items] | |||
Total impairment | 995 | 68 | 385 |
Other Reconciling Items between Segment Profit and Operating Profit [member] | Withdrawal of tanzeum [member] | |||
Disclosure of operating segments [line items] | |||
Total impairment | £ 229 | ||
US [member] | Pharmaceuticals and Vaccines [member] | |||
Disclosure of operating segments [line items] | |||
Number of wholesalers | Wholesalers | 3 | ||
Wholesalers 1 [member] | US [member] | Pharmaceuticals and Vaccines [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | £ 2,449 | 2,139 | 1,574 |
Wholesalers 2 [member] | US [member] | Pharmaceuticals and Vaccines [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | 3,043 | 2,691 | 2,471 |
Wholesalers 3 [member] | US [member] | Pharmaceuticals and Vaccines [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | £ 2,356 | £ 2,129 | £ 1,602 |
Segment Information - Turnover
Segment Information - Turnover by Segment (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of operating segments [line items] | |||
Turnover | £ 30,186 | £ 27,889 | £ 23,923 |
Operating Segments [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | 30,186 | 27,889 | 23,851 |
Corporate and Other Unallocated [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | 72 | ||
Pharmaceuticals [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | 17,276 | 16,104 | 14,157 |
Pharmaceuticals [member] | Operating Segments [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | 17,276 | 16,104 | 14,157 |
Vaccines [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | 5,160 | 4,592 | 3,656 |
Vaccines [member] | Operating Segments [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | 5,160 | 4,592 | 3,656 |
Consumer Healthcare [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | 7,750 | 7,193 | 6,038 |
Consumer Healthcare [member] | Operating Segments [member] | |||
Disclosure of operating segments [line items] | |||
Turnover | £ 7,750 | £ 7,193 | £ 6,038 |
Segment Information - Turnov100
Segment Information - Turnover by Product & Service (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of products and services [line items] | |||
Turnover | £ 30,186 | £ 27,889 | £ 23,923 |
Consumer Healthcare [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 7,750 | 7,193 | 6,038 |
Consumer Healthcare [member] | Wellness [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 4,001 | 3,726 | 2,970 |
Consumer Healthcare [member] | Oral Care [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 2,466 | 2,223 | 1,875 |
Consumer Healthcare [member] | Nutrition [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 680 | 674 | 684 |
Consumer Healthcare [member] | Skin Health [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 603 | 570 | 509 |
Pharmaceuticals [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 17,276 | 16,104 | 14,157 |
Pharmaceuticals [member] | Respiratory [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 6,991 | 6,510 | 5,741 |
Pharmaceuticals [member] | HIV [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 4,350 | 3,556 | 2,322 |
Pharmaceuticals [member] | Immuno inflammation [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 377 | 340 | 263 |
Pharmaceuticals [member] | Established Pharmaceuticals [Member] | |||
Disclosure of products and services [line items] | |||
Turnover | 5,558 | 5,698 | 5,831 |
Vaccines [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 5,160 | 4,592 | 3,656 |
Vaccines [member] | Meningitis [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 890 | 662 | 326 |
Vaccines [member] | Influenza [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 488 | 414 | 268 |
Vaccines [member] | Shingles [member] | |||
Disclosure of products and services [line items] | |||
Turnover | 22 | ||
Vaccines [member] | Established vaccines [member] | |||
Disclosure of products and services [line items] | |||
Turnover | £ 3,760 | £ 3,516 | £ 3,062 |
Segment Information - Segment P
Segment Information - Segment Profit and Operating Profit (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Segment profit | |||
Operating profit | £ 4,087 | £ 2,598 | £ 10,322 |
Finance income | 65 | 72 | 104 |
Finance costs | (734) | (736) | (757) |
Profit on disposal of interest in associates | 94 | 843 | |
Share of after tax profits of associates and joint ventures | 13 | 5 | 14 |
Profit before taxation | 3,525 | 1,939 | 10,526 |
Taxation | (1,356) | (877) | (2,154) |
Profit after taxation for the year | 2,169 | 1,062 | 8,372 |
Depreciation and amortisation by segment | |||
Total depreciation and amortisation | 1,922 | 1,774 | 1,630 |
PP&E, intangible asset and goodwill impairment by segment | |||
Total impairment | 1,069 | 289 | 587 |
PP&E and intangible asset impairment reversals by segment | |||
Total impairment reversals | (52) | (87) | (24) |
Net operating assets | 15,117 | 16,966 | |
Net debt | (13,178) | (13,804) | |
Investments in associates and joint ventures | 183 | 263 | 207 |
Derivative financial instruments | 2 | (38) | |
Current and deferred taxation | 1,252 | 1,361 | |
Assets held for sale | 113 | 215 | |
Net assets | 3,489 | 4,963 | |
Operating Segments [member] | |||
Segment profit | |||
Operating profit | 8,944 | 8,033 | 5,923 |
Depreciation and amortisation by segment | |||
Total depreciation and amortisation | 1,187 | 1,092 | 934 |
PP&E, intangible asset and goodwill impairment by segment | |||
Total impairment | 71 | 197 | 184 |
PP&E and intangible asset impairment reversals by segment | |||
Total impairment reversals | (16) | (52) | (22) |
Net operating assets | 14,249 | 17,194 | |
Corporate and Other Unallocated [member] | |||
Segment profit | |||
Operating profit | (376) | (362) | (264) |
Depreciation and amortisation by segment | |||
Total depreciation and amortisation | 144 | 94 | 145 |
PP&E, intangible asset and goodwill impairment by segment | |||
Total impairment | 3 | 24 | 18 |
PP&E and intangible asset impairment reversals by segment | |||
Total impairment reversals | (26) | (2) | |
Net operating assets | 868 | (228) | |
Other Reconciling Items between Segment Profit and Operating Profit [member] | |||
Segment profit | |||
Operating profit | (4,481) | (5,073) | 4,663 |
Depreciation and amortisation by segment | |||
Total depreciation and amortisation | 591 | 588 | 551 |
PP&E, intangible asset and goodwill impairment by segment | |||
Total impairment | 995 | 68 | 385 |
PP&E and intangible asset impairment reversals by segment | |||
Total impairment reversals | (36) | (9) | |
Pharmaceuticals [member] | Operating Segments [member] | |||
Segment profit | |||
Operating profit | 8,667 | 7,976 | 6,449 |
Depreciation and amortisation by segment | |||
Total depreciation and amortisation | 551 | 440 | 303 |
PP&E, intangible asset and goodwill impairment by segment | |||
Total impairment | 38 | 29 | 57 |
PP&E and intangible asset impairment reversals by segment | |||
Total impairment reversals | (13) | (15) | (8) |
Net operating assets | 2,017 | 3,225 | |
Pharmaceuticals Research and Development [member] | Operating Segments [member] | |||
Segment profit | |||
Operating profit | (2,740) | (2,488) | (2,168) |
Depreciation and amortisation by segment | |||
Total depreciation and amortisation | 96 | 211 | 238 |
PP&E, intangible asset and goodwill impairment by segment | |||
Total impairment | 10 | 88 | 105 |
PP&E and intangible asset impairment reversals by segment | |||
Total impairment reversals | (2) | (10) | (10) |
Net operating assets | 522 | 572 | |
Pharmaceuticals Including Research and Development [member] | Operating Segments [member] | |||
Segment profit | |||
Operating profit | 5,927 | 5,488 | 4,281 |
Depreciation and amortisation by segment | |||
Total depreciation and amortisation | 647 | 651 | 541 |
PP&E, intangible asset and goodwill impairment by segment | |||
Total impairment | 48 | 117 | 162 |
PP&E and intangible asset impairment reversals by segment | |||
Total impairment reversals | (15) | (25) | (18) |
Net operating assets | 2,539 | 3,797 | |
Vaccines [member] | Operating Segments [member] | |||
Segment profit | |||
Operating profit | 1,644 | 1,429 | 958 |
Depreciation and amortisation by segment | |||
Total depreciation and amortisation | 405 | 315 | 253 |
PP&E, intangible asset and goodwill impairment by segment | |||
Total impairment | 13 | 34 | 17 |
PP&E and intangible asset impairment reversals by segment | |||
Total impairment reversals | (19) | ||
Net operating assets | 9,707 | 9,676 | |
Consumer Healthcare [member] | Operating Segments [member] | |||
Segment profit | |||
Operating profit | 1,373 | 1,116 | 684 |
Depreciation and amortisation by segment | |||
Total depreciation and amortisation | 135 | 126 | 140 |
PP&E, intangible asset and goodwill impairment by segment | |||
Total impairment | 10 | 46 | 5 |
PP&E and intangible asset impairment reversals by segment | |||
Total impairment reversals | (1) | (8) | £ (4) |
Net operating assets | £ 2,003 | £ 3,721 |
Segment Information - Summary o
Segment Information - Summary of Geographical Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of geographical areas [line items] | |||
Turnover | £ 30,186 | £ 27,889 | £ 23,923 |
Non-current assets | 34,566 | 36,096 | |
UK [member] | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | 6,824 | 7,060 | |
US [member] | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | 6,841 | 7,802 | |
International [member] | |||
Disclosure of geographical areas [line items] | |||
Non-current assets | 20,901 | 21,234 | |
Customer [member] | |||
Disclosure of geographical areas [line items] | |||
Turnover | 30,186 | 27,889 | 23,923 |
Customer [member] | UK [member] | |||
Disclosure of geographical areas [line items] | |||
Turnover | 940 | 1,056 | 1,102 |
Customer [member] | US [member] | |||
Disclosure of geographical areas [line items] | |||
Turnover | 11,263 | 10,197 | 8,222 |
Customer [member] | International [member] | |||
Disclosure of geographical areas [line items] | |||
Turnover | £ 17,983 | £ 16,636 | £ 14,599 |
Other Operating Income_(Expe103
Other Operating Income/(Expense) - Information about Other Operating Income Expense (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of other operating income expense [abstract] | |||
Impairment of equity investments | £ (30) | £ (47) | £ (263) |
Disposal of equity investments | 37 | 254 | 342 |
Disposal of businesses and assets | 195 | 283 | 9,661 |
Fair value remeasurements on contingent consideration recognised in business combinations | (1,012) | (2,205) | (1,965) |
Remeasurement of ViiV Healthcare put option liabilities and preferential dividends | 13 | (577) | |
Remeasurement of Consumer Healthcare put option liability | (1,186) | (1,133) | (83) |
Fair value adjustments on derivative financial instruments | 9 | (3) | 2 |
Other income/(expense) | 9 | 23 | 21 |
Other operating income expense | £ (1,965) | £ (3,405) | £ 7,715 |
Other Operating Income_(Expe104
Other Operating Income/(Expense) - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of other operating income expense [line items] | |||
Disposal of businesses and assets | £ 195 | £ 283 | £ 9,661 |
Fair value remeasurements on contingent consideration | (1,012) | (2,205) | (1,965) |
Other operating expenses | (1,965) | (3,405) | 7,715 |
US tax reform [member] | |||
Disclosure of other operating income expense [line items] | |||
Other operating expenses | (666) | ||
Vaccines business acquisition [member] | |||
Disclosure of other operating income expense [line items] | |||
Fair value remeasurements on contingent consideration | 53 | ||
Ofatumumab [member] | |||
Disclosure of other operating income expense [line items] | |||
Milestone income included in disposal of businesses | £ 152 | ||
Disposal of the divestment | 200 | ||
Oncology [member] | |||
Disclosure of other operating income expense [line items] | |||
Disposal of businesses and assets | £ 9,228 | ||
Anaesthesia [member] | |||
Disclosure of other operating income expense [line items] | |||
Disposal of businesses and assets | 250 | ||
Shionogi ViiV healthcare joint venture [member] | |||
Disclosure of other operating income expense [line items] | |||
Fair value remeasurements on contingent consideration | £ 909 |
Operating Profit - Summary of I
Operating Profit - Summary of Information About Profit Loss (Detail) - GBP (£) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Profit or loss [abstract] | |||
Employee costs (Note 9) | £ 9,122,000,000 | £ 8,212,000,000 | £ 8,030,000,000 |
Advertising | 1,351,000,000 | 1,265,000,000 | 1,059,000,000 |
Distribution costs | 405,000,000 | 395,000,000 | 376,000,000 |
Depreciation of property, plant and equipment | 988,000,000 | 978,000,000 | 892,000,000 |
Impairment of property, plant and equipment, net of reversals | 327,000,000 | 180,000,000 | 346,000,000 |
Amortisation of intangible assets | 934,000,000 | 796,000,000 | 738,000,000 |
Impairment of intangible assets, net of reversals | 690,000,000 | 22,000,000 | 217,000,000 |
Net foreign exchange losses | 215,000,000 | 53,000,000 | 47,000,000 |
Inventories: | |||
Cost of inventories included in cost of sales | 8,526,000,000 | 8,093,000,000 | 7,602,000,000 |
Write-down of inventories | 701,000,000 | 533,000,000 | 488,000,000 |
Reversal of prior year write-down of inventories | (352,000,000) | (145,000,000) | (65,000,000) |
Operating lease rentals: | |||
Minimum lease payments | 110,000,000 | 91,000,000 | 101,000,000 |
Contingent rents | 4,000,000 | 4,000,000 | 8,000,000 |
Sub-lease payments | 5,000,000 | 4,000,000 | 7,000,000 |
Fees payable to the company's auditor and its associates in relation to the Group | £ 29,200,000 | £ 29,700,000 | £ 33,100,000 |
Operating Profit - Additional I
Operating Profit - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Operating Profit [line items] | |||
Net foreign exchange losses | £ (215) | £ (53) | £ (47) |
Major restructuring costs | 1,056 | 970 | 1,891 |
Liquidation Or Disposal Of Overseas Subsidiary [member] | |||
Disclosure of Operating Profit [line items] | |||
Net foreign exchange losses | £ 109 | £ 0 | £ 0 |
Operating Profit - Summary of A
Operating Profit - Summary of Auditors Remuneration (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Auditor's remuneration [abstract] | |||
Audit | £ 27.7 | £ 26.6 | £ 28.1 |
Taxation compliance | 0.2 | 0.2 | 0.3 |
Taxation advice | 0.1 | 1.8 | 3.2 |
Other assurance services | 1 | 0.3 | 1.1 |
All other services | 0.2 | 0.8 | 0.4 |
Auditors remuneration | 29.2 | 29.7 | 33.1 |
Pension schemes [member] | |||
Auditor's remuneration [abstract] | |||
Audit | 0.3 | 0.4 | 0.3 |
All other services | 0.1 | 0 | 0 |
GLAXOSMITHKLINE PLC [member] | |||
Auditor's remuneration [abstract] | |||
Audit | 7 | 5.8 | 7.5 |
Subsidiaries [member] | |||
Auditor's remuneration [abstract] | |||
Audit | 16.2 | 16.4 | 16.3 |
Attestation under s.404 of Sarbanes-Oxley Act 2002 [member] | |||
Auditor's remuneration [abstract] | |||
Audit | £ 4.5 | £ 4.4 | £ 4.3 |
Employee Costs - Summary of Emp
Employee Costs - Summary of Employee Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Short-term employee benefits expense [abstract] | |||
Wages and salaries | £ 7,116 | £ 6,391 | £ 6,132 |
Social security costs | 802 | 733 | 633 |
Pension and other post-employment costs, including augmentations (Note 28) | 616 | 541 | 467 |
Cost of share-based incentive plans | 347 | 338 | 349 |
Severance and other costs from integration and restructuring activities | 241 | 209 | 449 |
Employee benefits expense | £ 9,122 | £ 8,212 | £ 8,030 |
Employee Costs - Summary of Cos
Employee Costs - Summary of Cost of Share-based Incentive Plans (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expense from share based payment transactions with employees [line items] | |||
Cost of share-based incentive plans | £ 347 | £ 338 | £ 349 |
Share Value Plan [member] | |||
Expense from share based payment transactions with employees [line items] | |||
Cost of share-based incentive plans | 276 | 271 | 307 |
Performance Share Plan [member] | |||
Expense from share based payment transactions with employees [line items] | |||
Cost of share-based incentive plans | 47 | 39 | 26 |
Share option plans [member] | |||
Expense from share based payment transactions with employees [line items] | |||
Cost of share-based incentive plans | 4 | 4 | 4 |
Cash settled and other plans [member] | |||
Expense from share based payment transactions with employees [line items] | |||
Cost of share-based incentive plans | £ 20 | £ 24 | £ 12 |
Employee Costs - Disclosure of
Employee Costs - Disclosure of Average Monthly Number of Persons Employed by the Group (Including Directors) (Detail) - Employee | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of employee costs and numbers [line items] | |||
Average number of employees | 99,349 | 99,827 | 101,192 |
Manufacturing [member] | |||
Disclosure of employee costs and numbers [line items] | |||
Average number of employees | 38,632 | 38,611 | 37,025 |
Selling, general and administration [member] | |||
Disclosure of employee costs and numbers [line items] | |||
Average number of employees | 49,141 | 49,961 | 52,121 |
Research and development [member] | |||
Disclosure of employee costs and numbers [line items] | |||
Average number of employees | 11,576 | 11,255 | 12,046 |
Employee Costs - Summary of Com
Employee Costs - Summary of Compensation of the Directors and Senior Management (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Employees Benefit [abstract] | |||
Wages and salaries | £ 26 | £ 25 | £ 23 |
Social security costs | 4 | 4 | 2 |
Pension and other post-employment costs | 3 | 2 | 3 |
Cost of share-based incentive plans | 22 | 15 | 18 |
Key management personnel compensation | £ 55 | £ 46 | £ 46 |
Major Restructuring Costs - Add
Major Restructuring Costs - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major Restructuring Costs [Abstract] | |||
Total restructuring costs | £ 1,056 | ||
Legacy support functions and Novartis integration provisions | 43 | £ 140 | £ 44 |
Asset impairments | 278 | 158 | 419 |
Other non-cash items | £ 247 | £ 108 | £ 51 |
Major Restructuring Costs - Sum
Major Restructuring Costs - Summary of Costs Charged to Operating Profit (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Major Restructuring Costs [Abstract] | |||
Increase in provision for major restructuring programmes | £ 259 | £ 163 | £ 718 |
Amount of provision reversed unused | (43) | (140) | (44) |
Impairment losses recognised | 278 | 158 | 419 |
Other non-cash charges | 247 | 108 | 51 |
Other cash costs | 315 | 681 | 747 |
Cost charged to operating profit | £ 1,056 | £ 970 | £ 1,891 |
Finance Income - Summary of Int
Finance Income - Summary of Interest Income (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Analysis of income and expense [abstract] | |||
cash and cash equivalents | £ 60 | £ 67 | £ 71 |
available-for-saleinvestments | 2 | 1 | 1 |
derivatives at fair value through profit or loss | 24 | ||
loans and receivables | 1 | 2 | 3 |
Fair value adjustments on derivatives at fair value through profit or loss | 2 | 2 | 5 |
Finance income | £ 65 | £ 72 | £ 104 |
Finance Expense - Summary of Fi
Finance Expense - Summary of Finance Cost (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest expense arising on: | |||
financial liabilities at amortised cost | £ (698) | £ (671) | £ (655) |
derivatives at fair value through profit or loss | (22) | (30) | (64) |
Fair value movements on other derivatives at fair value through profit or loss | (4) | (3) | (6) |
Reclassification of cash flow hedge from other comprehensive income | (1) | (2) | |
Unwinding of discounts on provisions | (16) | (16) | (16) |
Other finance expense | 6 | (15) | (14) |
Finance Costs | £ (734) | £ (736) | £ (757) |
Finance Expense - Additional In
Finance Expense - Additional Information (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Disclosure Of Finance Expense [abstract] | |
Description of financial instrument | All derivatives accounted for at fair value through profit or loss, other than designated and effective hedging instruments (see Note 42, 'Financial instruments and related disclosures'), are classified as held-for-trading financial instruments under IAS 39. Interest expense arising on derivatives at fair value through profit or loss relates to swap interest expense. |
Interest relating to income taxes | £ 24 |
Associates and Joint Ventures -
Associates and Joint Ventures - Summary of After Tax Profits and Losses of Associates and Joint Ventures (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial information of associates and joint ventures [line items] | |||
Share of after tax profits and losses of associates and joint ventures | £ 13 | £ 5 | £ 14 |
Joint ventures [member] | |||
Disclosure of financial information of associates and joint ventures [line items] | |||
Share of after tax profits and losses of associates and joint ventures | (3) | (4) | (2) |
Associates [member] | |||
Disclosure of financial information of associates and joint ventures [line items] | |||
Share of after tax profits and losses of associates and joint ventures | £ 16 | £ 9 | £ 16 |
Associates and joint venture118
Associates and joint ventures - Additional Information (Detail) - GBP (£) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of joint ventures and associates [line items] | |||
Profit after taxation for the year | £ 13,000,000 | £ 5,000,000 | £ 14,000,000 |
Other comprehensive income | 713,000,000 | 962,000,000 | (487,000,000) |
Sales to associates and joint ventures | 41,000,000 | £ 43,000,000 | £ 41,000,000 |
Innoviva Inc [member] | |||
Disclosure of joint ventures and associates [line items] | |||
Profit after taxation for the year | 18,000,000 | ||
Other comprehensive income | £ 0 |
Associates and Joint Venture119
Associates and Joint Ventures - Summary of Group Held for Significant Associate (Detail) - GBP (£) £ in Millions | 4 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial information of associates and joint ventures [line items] | ||||
Turnover | £ 30,186 | £ 27,889 | £ 23,923 | |
Profit after taxation | 2,169 | 1,062 | 8,372 | |
Other comprehensive income | 713 | 962 | (487) | |
Total comprehensive income | 2,882 | 2,024 | £ 7,885 | |
Innoviva Inc [member] | ||||
Disclosure of financial information of associates and joint ventures [line items] | ||||
Turnover | £ 20 | 165 | 98 | |
Profit after taxation | 4 | 103 | 44 | |
Other comprehensive income | 0 | 0 | 0 | |
Total comprehensive income | £ 4 | £ 103 | £ 44 |
Associates and Joint Venture120
Associates and Joint Ventures - Summary of Aggregated Financial Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of financial information of associates and joint ventures [line items] | |||
Share of turnover | £ 30,186 | £ 27,889 | £ 23,923 |
Share of after tax (losses)/profits | 2,169 | 1,062 | 8,372 |
Share of other comprehensive income | 713 | 962 | (487) |
Share of total comprehensive (expense)/income | 2,882 | 2,024 | 7,885 |
Other associates [member] | |||
Disclosure of financial information of associates and joint ventures [line items] | |||
Share of turnover | 252 | 133 | 188 |
Share of after tax (losses)/profits | (5) | (1) | 12 |
Share of other comprehensive income | 25 | ||
Share of total comprehensive (expense)/income | £ (5) | £ (1) | £ 37 |
Taxation - Summary of Taxation
Taxation - Summary of Taxation Charge Based on Profits (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax expense (income) and adjustments for current tax of prior periods [abstract] | |||
Credit in respect of prior periods | £ (508) | £ (149) | £ (508) |
Total current taxation | 1,619 | 1,418 | 2,572 |
Total deferred taxation | (263) | (541) | (418) |
Total tax | 1,356 | 877 | 2,154 |
UK [member] | |||
Current tax expense (income) and adjustments for current tax of prior periods [abstract] | |||
Current tax expense (income) | 199 | 241 | 156 |
International [member] | |||
Current tax expense (income) and adjustments for current tax of prior periods [abstract] | |||
Current tax expense (income) | £ 1,928 | £ 1,326 | £ 2,924 |
Taxation - Additional Informati
Taxation - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax expense benefits [line items] | |||
Average effective tax rate | 38.50% | 45.20% | 20.50% |
Other permanent differences | £ 196 | £ 97 | £ 58 |
Deferred tax charge related to equity | (222) | 147 | £ (177) |
Provisions For Uncertain Tax Position | 1,175 | 1,892 | |
Provision for deferred tax liabilities | 1,396 | 1,934 | |
One-off repatriation tax charge | 348 | ||
Unremitted profits for which deferred tax not provided | 0 | 1,700 | |
Unremitted profits | 17,000 | 18,000 | |
Deferred tax expense (income) recognised in profit or loss | 247 | ||
Research and development incentives recognised in operating profit | 16 | ||
Deferred tax assets recognized on trading losses | 261 | 173 | |
Deferred tax assets recognized on capital losses | 54 | ||
Foreign tax credits for which deferred tax has not been recogized | 721 | ||
Swiss tax reform [Member] | |||
Income tax expense benefits [line items] | |||
Deferred tax expense (income) recognised in profit or loss | 483 | ||
Origination and reversal of temporary differences [Member] | |||
Income tax expense benefits [line items] | |||
Deferred tax expense (income) recognised in profit or loss | 569 | ||
US tax reform [member] | |||
Income tax expense benefits [line items] | |||
Deferred tax expense (income) recognised in profit or loss | 805 | ||
Overseas [Member] | |||
Income tax expense benefits [line items] | |||
Provision for deferred tax liabilities | 209 | £ 205 | |
UK [member] | |||
Income tax expense benefits [line items] | |||
Payments of corporation tax | 212 | ||
US and Belgium [member] | |||
Income tax expense benefits [line items] | |||
Other permanent differences | 34 | ||
Deferred tax charge related to equity | (27) | ||
Deferred tax charge related to statement of comprehensive income | £ (25) |
Taxation - Summary of Reconcili
Taxation - Summary of Reconciliation of Tax Charge Calculated at the UK Statutory Rate on the Group Profit Before Tax with the Actual Tax Charge (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure - Taxation - Summary of Reconciliation of Tax Charge Calculated at the UK Statutory Rate on the Group Profit Before Tax with the Actual Tax Charge [Abstract] | |||
Profit before tax | £ 3,525 | £ 1,939 | £ 10,526 |
UK statutory rate of taxation | 679 | 388 | 2,131 |
Differences in overseas taxation rates | 635 | 593 | 1,035 |
Benefit of intellectual property incentives | (458) | (321) | (286) |
R&D credits | (75) | (93) | (38) |
Remeasurement of non-taxable put option liabilities | 227 | 340 | 17 |
Losses not recognised/(previously unrecognised losses) | 28 | (15) | 31 |
Permanent differences on disposals and acquisitions | 4 | (21) | (248) |
Other permanent differences | 196 | 97 | 58 |
Reassessment of prior year estimates in respect of current and deferred taxes | (475) | (116) | (578) |
US and Swiss tax reform | 595 | ||
Tax on unremitted earnings | 25 | 32 | |
Tax charge/tax rate | £ 1,356 | £ 877 | £ 2,154 |
UK statutory rate of taxation | 19.25% | 20.00% | 20.25% |
Differences in overseas taxation rates | 18.00% | 30.60% | 9.80% |
Benefit of intellectual property incentives | (13.00%) | (16.50%) | (2.70%) |
R&D credits | (2.10%) | (4.80%) | (0.40%) |
Remeasurement of non-taxable put option liabilities | 6.40% | 17.50% | 0.20% |
Losses not recognised/(previously unrecognised losses) | 0.80% | (0.80%) | 0.30% |
Permanent differences on disposals and acquisitions | 0.10% | (1.10%) | (2.40%) |
Other permanent differences | 5.60% | 5.00% | 0.60% |
Reassessment of prior year estimates in respect of current and deferred taxes | (13.50%) | (6.00%) | (5.50%) |
US and Swiss tax reform | 16.90% | ||
Tax on unremitted earnings | 1.30% | 0.30% | |
Tax charge/tax rate | 38.50% | 45.20% | 20.50% |
Taxation - Summary of Tax on It
Taxation - Summary of Tax on Items Charged to Equity and Statement of Comprehensive Income (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred taxation | |||
Share-based payments | £ (4) | £ (12) | |
Defined benefit plans | (247) | £ 94 | (110) |
Exchange movements | 0 | 0 | 0 |
Fair value movements on cash flow hedges | 2 | ||
Fair value movements on available-for-saleinvestments | 29 | 51 | (55) |
Total equity and comprehensive income | (222) | 147 | (177) |
Total (charge)/credit to equity and statement of comprehensive income | (196) | 186 | (125) |
Share-based payments | 7 | 22 | |
Defined benefit plans | 26 | 32 | 30 |
Total equity and comprehensive income | £ 26 | £ 39 | £ 52 |
Taxation - Impact of Tax Reform
Taxation - Impact of Tax Reform on Profits Attributable to Shareholders (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax expense benefits [line items] | |||
Other operating expenses | £ (1,965) | £ (3,405) | £ 7,715 |
Current tax | (1,619) | (1,418) | (2,572) |
Deferred tax | 263 | 541 | 418 |
Profit after taxation for the year | 2,169 | 1,062 | 8,372 |
Profit attributable to non-controlling interests | 637 | 150 | (50) |
Profit attributable to shareholders | 1,532 | £ 912 | £ 8,422 |
Swiss tax reform [Member] | |||
Income tax expense benefits [line items] | |||
Deferred tax | 483 | ||
Profit after taxation for the year | 483 | ||
Profit attributable to non-controlling interests | 176 | ||
Profit attributable to shareholders | 307 | ||
US tax reform [member] | |||
Income tax expense benefits [line items] | |||
Other operating expenses | (666) | ||
Current tax | (273) | ||
Deferred tax | (805) | ||
Profit after taxation for the year | (1,744) | ||
Profit attributable to non-controlling interests | (114) | ||
Profit attributable to shareholders | £ (1,630) |
Taxation - Impact on Tax Charge
Taxation - Impact on Tax Charge Arising From US Tax Reform (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of tax reform [line items] | |||
Current tax | £ 1,619 | £ 1,418 | £ 2,572 |
Deferred tax | (263) | (541) | (418) |
Tax charge/tax rate | 1,356 | £ 877 | £ 2,154 |
US tax reform [member] | |||
Disclosure of tax reform [line items] | |||
Current tax | 273 | ||
Deferred tax | 805 | ||
US [member] | Revaluation of assets and liabilities [Member] | |||
Disclosure of tax reform [line items] | |||
Current tax | 75 | ||
Deferred tax | (805) | ||
Tax charge/tax rate | (730) | ||
US [member] | Repatriation Taxes [Member] | |||
Disclosure of tax reform [line items] | |||
Current tax | (348) | ||
Tax charge/tax rate | (348) | ||
US [member] | US tax reform [member] | |||
Disclosure of tax reform [line items] | |||
Current tax | (273) | ||
Deferred tax | (805) | ||
Tax charge/tax rate | £ (1,078) |
Taxation - Summary of Movement
Taxation - Summary of Movement in Deferred Tax Assets and Liabilities (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Changes in deferred tax liability (asset) [abstract] | |
At 1 January 2017 | £ 2,440 |
Exchange adjustments | (65) |
Credit to income statement associated with Swiss tax reform | 247 |
(Charge)/credit to statement of comprehensive income and equity | (222) |
At 31 December 2017 | 2,400 |
Accelerate Capital Allowances [Member] | |
Changes in deferred tax liability (asset) [abstract] | |
At 1 January 2017 | (377) |
Exchange adjustments | (7) |
At 31 December 2017 | (317) |
Share Option and Award Schemes [member] | |
Changes in deferred tax liability (asset) [abstract] | |
At 1 January 2017 | 110 |
Exchange adjustments | (4) |
(Charge)/credit to statement of comprehensive income and equity | (4) |
At 31 December 2017 | 74 |
Contingent Consideration [member] | |
Changes in deferred tax liability (asset) [abstract] | |
At 1 January 2017 | 1,138 |
At 31 December 2017 | 868 |
Intangible assets [member] | |
Changes in deferred tax liability (asset) [abstract] | |
At 1 January 2017 | (2,324) |
Exchange adjustments | 75 |
At 31 December 2017 | (1,320) |
Tax losses [member] | |
Changes in deferred tax liability (asset) [abstract] | |
At 1 January 2017 | 227 |
Exchange adjustments | (5) |
At 31 December 2017 | 261 |
Other temporary differences [member] | |
Changes in deferred tax liability (asset) [abstract] | |
At 1 January 2017 | 1,350 |
Exchange adjustments | (18) |
(Charge)/credit to statement of comprehensive income and equity | 29 |
At 31 December 2017 | 1,057 |
Origination and reversal of temporary differences [Member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | 569 |
Origination and reversal of temporary differences [Member] | Accelerate Capital Allowances [Member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | 62 |
Origination and reversal of temporary differences [Member] | Share Option and Award Schemes [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | (1) |
Origination and reversal of temporary differences [Member] | Contingent Consideration [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | (52) |
Origination and reversal of temporary differences [Member] | Intangible assets [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | 330 |
Origination and reversal of temporary differences [Member] | Tax losses [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | 59 |
Origination and reversal of temporary differences [Member] | Other temporary differences [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | (88) |
US tax reform [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | (805) |
US tax reform [member] | Accelerate Capital Allowances [Member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | 5 |
US tax reform [member] | Share Option and Award Schemes [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | (27) |
US tax reform [member] | Contingent Consideration [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | (218) |
US tax reform [member] | Intangible assets [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | 116 |
US tax reform [member] | Tax losses [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | (20) |
US tax reform [member] | Other temporary differences [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | (216) |
Swiss tax reform [Member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | 483 |
Swiss tax reform [Member] | Intangible assets [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | 483 |
Pensions and other post-employment benefits [member] | |
Changes in deferred tax liability (asset) [abstract] | |
At 1 January 2017 | 1,262 |
Exchange adjustments | (48) |
(Charge)/credit to statement of comprehensive income and equity | (247) |
At 31 December 2017 | 760 |
Pensions and other post-employment benefits [member] | Origination and reversal of temporary differences [Member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | 3 |
Pensions and other post-employment benefits [member] | US tax reform [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | (210) |
Intra Group Profit [member] | |
Changes in deferred tax liability (asset) [abstract] | |
At 1 January 2017 | 1,054 |
Exchange adjustments | (58) |
At 31 December 2017 | 1,017 |
Intra Group Profit [member] | Origination and reversal of temporary differences [Member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | 256 |
Intra Group Profit [member] | US tax reform [member] | |
Changes in deferred tax liability (asset) [abstract] | |
Credit to income statement associated with Swiss tax reform | £ (235) |
Taxation - Summary of Net Defer
Taxation - Summary of Net Deferred Tax Asset (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Major components of tax expense (income) [abstract] | ||
Deferred tax assets | £ 3,796 | £ 4,374 |
Deferred tax liabilities | (1,396) | (1,934) |
Total | £ 2,400 | £ 2,440 |
Taxation - Summary of Temporary
Taxation - Summary of Temporary Difference Unused Tax Losses and Unused Tax Credits (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses | £ 1,760 | £ 1,723 |
Unrecognised deferred tax asset | 300 | 401 |
Capital losses | 372 | 396 |
Within 10 years [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses | 802 | 786 |
Unrecognised deferred tax asset | 187 | 255 |
Greater Than Ten Years [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses | 872 | 842 |
Unrecognised deferred tax asset | 99 | 131 |
Available Indefinitely [Member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses | 86 | 95 |
Unrecognised deferred tax asset | 14 | 15 |
Tax losses [member] | ||
Disclosure of temporary difference, unused tax losses and unused tax credits [line items] | ||
Tax losses | £ 1,924 | £ 2,320 |
Earnings per share - Summary of
Earnings per share - Summary of Basic and Diluted Earnings Per Share (Detail) - £ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings per share [abstract] | |||
Basic earnings per share | £ 0.314 | £ 0.188 | £ 1.743 |
Diluted earnings per share | £ 0.310 | £ 0.186 | £ 1.723 |
Earnings per share - Schedule o
Earnings per share - Schedule of Numbers of Shares Earnings Per Share (Detail) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted average number of shares in issue | |||
Basic | 4,886 | 4,860 | 4,831 |
Dilution for share options and awards | 55 | 49 | 57 |
Diluted | 4,941 | 4,909 | 4,888 |
Dividends - Summary of Interim
Dividends - Summary of Interim Financial Reporting (Detail) - GBP (£) £ / shares in Units, £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of dividends [line items] | |||
Dividend per share (pence) | £ 0.80 | £ 0.80 | £ 0.80 |
Total dividend | £ 3,911 | £ 3,897 | £ 3,872 |
First interim [member] | |||
Disclosure of dividends [line items] | |||
Paid | Jul. 13, 2017 | Jul. 14, 2016 | Jul. 9, 2015 |
Dividend per share (pence) | £ 0.19 | £ 0.19 | £ 0.19 |
Total dividend | £ 928 | £ 923 | £ 920 |
Second interim [member] | |||
Disclosure of dividends [line items] | |||
Paid | Oct. 12, 2017 | Oct. 13, 2016 | Oct. 1, 2015 |
Dividend per share (pence) | £ 0.19 | £ 0.19 | £ 0.19 |
Total dividend | £ 929 | £ 925 | £ 919 |
Third interim [member] | |||
Disclosure of dividends [line items] | |||
Paid | Jan. 11, 2018 | Jan. 12, 2017 | Jan. 14, 2016 |
Dividend per share (pence) | £ 0.19 | £ 0.19 | £ 0.19 |
Total dividend | £ 929 | £ 925 | £ 919 |
Fourth interim [member] | |||
Disclosure of dividends [line items] | |||
Paid | Apr. 12, 2018 | Apr. 13, 2017 | Apr. 14, 2016 |
Dividend per share (pence) | £ 0.23 | £ 0.23 | £ 0.23 |
Total dividend | £ 1,125 | £ 1,124 | £ 1,114 |
Special dividend [member] | |||
Disclosure of dividends [line items] | |||
Paid | Apr. 14, 2016 | ||
Dividend per share (pence) | £ 0.20 | ||
Total dividend | £ 969 |
Dividends - Additional Informat
Dividends - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Dividends [abstract] | |
Description of compliance with IFRSs applied For interim financial report | Under IFRS interim dividends are only recognised in the financial statements when paid and not when declared. GSK normally pays a dividend two quarters after the quarter to which it relates and one quarter after it is declared. The 2017 financial statements recognise those dividends paid in 2017, namely the third and fourth interim dividends for 2016, and the first and second interim dividends for 2017. |
Dividends - Summary of Dividend
Dividends - Summary of Dividends to Shareholders (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Dividends [abstract] | |||
Dividends to shareholders | £ 3,906 | £ 4,850 | £ 3,874 |
Property, Plant and Equipment -
Property, Plant and Equipment - Summary of Property, Plant and Equipment (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | £ 10,808 | £ 9,668 | |
Charge for the year | 988 | 978 | £ 892 |
Impairment losses | 327 | 180 | 346 |
Reversal of impairments | 33 | 171 | |
Property, plant and equipment at end of period | 10,860 | 10,808 | 9,668 |
Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 22,164 | 20,750 | |
Exchange adjustments | (234) | 2,327 | |
Other additions | 1,584 | 1,544 | |
Capitalised borrowing costs | 30 | 30 | |
Disposals and write-offs | (1,092) | (1,824) | |
Reclassifications | (38) | (139) | |
Transfer to assets held for sale | (695) | (524) | |
Property, plant and equipment at end of period | 21,719 | 22,164 | 20,750 |
Depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (10,669) | (10,329) | |
Exchange adjustments | 160 | (1,094) | |
Charge for the year | (988) | (978) | |
Disposals and write-offs | 697 | 1,475 | |
Transfer to assets held for sale | 504 | 257 | |
Property, plant and equipment at end of period | (10,296) | (10,669) | (10,329) |
Impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (687) | (753) | |
Exchange adjustments | 8 | (93) | |
Disposals and write-offs | 342 | 261 | |
Impairment losses | (349) | (258) | |
Reversal of impairments | 17 | 78 | |
Transfer to assets held for sale | 106 | 78 | |
Property, plant and equipment at end of period | (563) | (687) | (753) |
Depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (11,356) | ||
Property, plant and equipment at end of period | (10,859) | (11,356) | |
Land and buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 4,223 | 4,117 | |
Property, plant and equipment at end of period | 4,270 | 4,223 | 4,117 |
Land and buildings [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 7,761 | 7,305 | |
Exchange adjustments | (127) | 956 | |
Other additions | 69 | 117 | |
Disposals and write-offs | (376) | (349) | |
Reclassifications | 602 | 110 | |
Transfer to assets held for sale | (462) | (378) | |
Property, plant and equipment at end of period | 7,467 | 7,761 | 7,305 |
Land and buildings [member] | Depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (3,259) | (2,914) | |
Exchange adjustments | 50 | (377) | |
Charge for the year | (299) | (338) | |
Disposals and write-offs | 158 | 205 | |
Transfer to assets held for sale | 314 | 165 | |
Property, plant and equipment at end of period | (3,036) | (3,259) | (2,914) |
Land and buildings [member] | Impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (279) | (274) | |
Exchange adjustments | 8 | (45) | |
Disposals and write-offs | 210 | 91 | |
Impairment losses | (194) | (135) | |
Reversal of impairments | 7 | 38 | |
Transfer to assets held for sale | 87 | 46 | |
Property, plant and equipment at end of period | (161) | (279) | (274) |
Land and buildings [member] | Depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (3,538) | ||
Property, plant and equipment at end of period | (3,197) | (3,538) | |
Plant, equipment and vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 3,481 | 2,987 | |
Property, plant and equipment at end of period | 4,132 | 3,481 | 2,987 |
Plant, equipment and vehicles [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 11,235 | 10,775 | |
Exchange adjustments | (62) | 1,100 | |
Other additions | 296 | 384 | |
Disposals and write-offs | (685) | (1,422) | |
Reclassifications | 1,186 | 512 | |
Transfer to assets held for sale | (219) | (114) | |
Property, plant and equipment at end of period | 11,751 | 11,235 | 10,775 |
Plant, equipment and vehicles [member] | Depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (7,410) | (7,415) | |
Exchange adjustments | 110 | (717) | |
Charge for the year | (689) | (640) | |
Disposals and write-offs | 539 | 1,270 | |
Transfer to assets held for sale | 190 | 92 | |
Property, plant and equipment at end of period | (7,260) | (7,410) | (7,415) |
Plant, equipment and vehicles [member] | Impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (344) | (373) | |
Exchange adjustments | 2 | (37) | |
Disposals and write-offs | 104 | 135 | |
Impairment losses | (138) | (117) | |
Reversal of impairments | 9 | 38 | |
Transfer to assets held for sale | 8 | 10 | |
Property, plant and equipment at end of period | (359) | (344) | (373) |
Plant, equipment and vehicles [member] | Depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (7,754) | ||
Property, plant and equipment at end of period | (7,619) | (7,754) | |
Assets in construction [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 3,104 | 2,564 | |
Property, plant and equipment at end of period | 2,458 | 3,104 | 2,564 |
Assets in construction [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | 3,168 | 2,670 | |
Exchange adjustments | (45) | 271 | |
Other additions | 1,219 | 1,043 | |
Capitalised borrowing costs | 30 | 30 | |
Disposals and write-offs | (31) | (53) | |
Reclassifications | (1,826) | (761) | |
Transfer to assets held for sale | (14) | (32) | |
Property, plant and equipment at end of period | 2,501 | 3,168 | 2,670 |
Assets in construction [member] | Impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (64) | (106) | |
Exchange adjustments | (2) | (11) | |
Disposals and write-offs | 28 | 35 | |
Impairment losses | (17) | (6) | |
Reversal of impairments | 1 | 2 | |
Transfer to assets held for sale | 11 | 22 | |
Property, plant and equipment at end of period | (43) | (64) | £ (106) |
Assets in construction [member] | Depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment at beginning of period | (64) | ||
Property, plant and equipment at end of period | £ (43) | £ (64) |
Property, Plant and Equipmen136
Property, Plant and Equipment - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about property, plant and equipment [line items] | |||
Weighted average interest rate for capitalised borrowing costs | 4.00% | 3.80% | |
Property, plant and equipment | £ 10,860 | £ 10,808 | £ 9,668 |
Weighted average cost of capital post tax percentage | 7.00% | ||
Weighted average cost of capital pre-tax discount rate percentage | 9.00% | ||
Impairment loss recognised in profit or loss, property, plant and equipment | £ 327 | 180 | 346 |
Impairments charged or reversed | 33 | 171 | |
Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 21,719 | 22,164 | 20,750 |
Assets in construction reclassified to intangible assets | (38) | (139) | |
Depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (10,296) | (10,669) | (10,329) |
Impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (563) | (687) | (753) |
Impairment loss recognised in profit or loss, property, plant and equipment | (349) | (258) | |
Impairments charged or reversed | 17 | 78 | |
Computer software [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Assets in construction reclassified to intangible assets | 38 | 139 | |
Cost of sales [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 198 | 45 | |
Research and development [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 93 | 15 | |
Selling, general and administrative expenses [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 36 | 120 | |
Major restructuring programmes [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Impairment loss recognised in profit or loss, property, plant and equipment | 278 | 151 | |
Freeholds land and buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 3,896 | 3,887 | |
Land and buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 4,270 | 4,223 | 4,117 |
Leased assets | 375 | 336 | |
Land and buildings [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 7,467 | 7,761 | 7,305 |
Leased assets | 630 | 590 | |
Assets in construction reclassified to intangible assets | 602 | 110 | |
Land and buildings [member] | Depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (3,036) | (3,259) | (2,914) |
Leased assets | 255 | 253 | |
Land and buildings [member] | Impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (161) | (279) | (274) |
Leased assets | 0 | 1 | |
Impairment loss recognised in profit or loss, property, plant and equipment | (194) | (135) | |
Impairments charged or reversed | 7 | 38 | |
Land and buildings [member] | Property with leases of 50 years or more [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 338 | 294 | |
Land and buildings [member] | Properties with leases less than 50 Years [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 36 | 42 | |
Plant, equipment and vehicles [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 4,132 | 3,481 | 2,987 |
Leased assets | 13 | 29 | |
Plant, equipment and vehicles [member] | Cost [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | 11,751 | 11,235 | 10,775 |
Leased assets | 18 | 44 | |
Assets in construction reclassified to intangible assets | 1,186 | 512 | |
Plant, equipment and vehicles [member] | Depreciation [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (7,260) | (7,410) | (7,415) |
Leased assets | 4 | 15 | |
Plant, equipment and vehicles [member] | Impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Property, plant and equipment | (359) | (344) | £ (373) |
Leased assets | 1 | 0 | |
Impairment loss recognised in profit or loss, property, plant and equipment | (138) | (117) | |
Impairments charged or reversed | £ 9 | £ 38 |
Goodwill - Summary of Changes i
Goodwill - Summary of Changes in Goodwill (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill Beginning balance | £ 5,965 | £ 5,162 |
Goodwill Ending Balance | 5,734 | 5,965 |
Cost [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Goodwill Beginning balance | 5,965 | 5,162 |
Exchange adjustments | (228) | 814 |
Additions through business combinations (Note 38) | 7 | |
Transfer to assets held for sale | (3) | (18) |
Goodwill Ending Balance | £ 5,734 | £ 5,965 |
Goodwill - Summary of Goodwill
Goodwill - Summary of Goodwill Allocated to Segments (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | £ 5,734 | £ 5,965 | £ 5,162 |
Pharmaceuticals [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | 3,172 | 3,288 | |
Vaccines [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | 1,302 | 1,353 | |
Consumer Healthcare [member] | |||
Disclosure of reconciliation of changes in goodwill [line items] | |||
Goodwill | £ 1,260 | £ 1,324 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2017 | |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Description of basis on which unit's recoverable amount has been determined | The recoverable amounts of the cash generating units are assessed using a fair value less costs of disposal model. Fair value less costs of disposal is calculated using a discounted cash flow approach, with a post-tax discount rate applied to the projected risk-adjusted post-tax cash flows and terminal value. | |
Discount rate applied to cash flow projections | 7.00% | 7.00% |
Pharmaceuticals [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Discount rate applied to cash flow projections | 7.00% | |
Carrying value of assets with indefinite lives | £ 211 | £ 228 |
Consumer Healthcare [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Discount rate applied to cash flow projections | 7.00% | |
Carrying value of assets with indefinite lives | £ 9,030 | £ 8,510 |
Goodwill - Schedule of Discount
Goodwill - Schedule of Discounted Cash Flow Models Used in Impairment Tests (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of reconciliation of changes in goodwill [line items] | ||
Valuation basis | Fair value less costs of disposal | |
Key assumptions | Sales growth rates Profit margins Terminal growth rate Discount rate Taxation rate | |
Determination of assumptions | Growth rates are internal forecasts based on both internal and external market information. Margins reflect past experience, adjusted for expected changes. Terminal growth rates based on management's estimate of future long-term average growth rates. Discount rates based on Group WACC, adjusted where appropriate. Taxation rates based on appropriate rates for each region. | |
Period of specific projected cash flows | Five years | |
Discount rate | 7.00% | 7.00% |
Pharmaceuticals [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Terminal growth rate | 1.00% | |
Discount rate | 7.00% | |
Vaccines [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Terminal growth rate | 2.00% | |
Discount rate | 7.00% | |
Consumer Healthcare [member] | ||
Disclosure of reconciliation of changes in goodwill [line items] | ||
Terminal growth rate | 2.00% | |
Discount rate | 7.00% |
Other Intangible Assets - Summa
Other Intangible Assets - Summary of Other Intangible Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | £ 18,776 | £ 16,672 | |
Charge for the year | (934) | (796) | £ (738) |
Impairment losses | 690 | 22 | 217 |
Ending Balance | 17,562 | 18,776 | 16,672 |
Brands with Indefinite Useful Life [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | 9,245 | 7,952 | |
Ending Balance | 8,738 | 9,245 | 7,952 |
Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | 27,101 | 23,883 | |
Exchange adjustments | (528) | 2,616 | |
Capitalised development costs | 251 | 240 | |
Capitalised borrowing costs | 5 | 4 | |
Additions through business combinations | 102 | ||
Other additions | 454 | 587 | |
Disposals and asset write-offs | (255) | (418) | |
Transfer to assets held for sale | (135) | (52) | |
Reclassifications | 38 | 139 | |
Ending Balance | 26,931 | 27,101 | 23,883 |
Cost [member] | Brands with Indefinite Useful Life [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | 9,375 | 8,074 | |
Exchange adjustments | (272) | 1,320 | |
Disposals and asset write-offs | (7) | ||
Transfer to assets held for sale | (44) | (12) | |
Reclassifications | (66) | ||
Ending Balance | 8,993 | 9,375 | 8,074 |
Amortisation [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (6,391) | (5,457) | |
Exchange adjustments | 166 | (507) | |
Charge for the year | (934) | (796) | |
Disposals and asset write-offs | 235 | 358 | |
Transfer to assets held for sale | 26 | 11 | |
Ending Balance | (6,898) | (6,391) | (5,457) |
Impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (1,934) | (1,754) | |
Exchange adjustments | 113 | (272) | |
Impairment losses | (680) | (22) | |
Disposals and asset write-offs | 7 | 86 | |
Transfer to assets held for sale | 23 | 28 | |
Ending Balance | (2,471) | (1,934) | (1,754) |
Impairment [member] | Brands with Indefinite Useful Life [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (130) | (122) | |
Exchange adjustments | 3 | (3) | |
Impairment losses | (132) | (5) | |
Transfer to assets held for sale | 4 | ||
Ending Balance | (255) | (130) | (122) |
Amortisation and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (8,325) | ||
Ending Balance | (9,369) | (8,325) | |
Amortisation and impairment [member] | Brands with Indefinite Useful Life [Member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (130) | ||
Ending Balance | (255) | (130) | |
Computer software [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | 963 | 695 | |
Ending Balance | 1,054 | 963 | 695 |
Computer software [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | 2,156 | 2,028 | |
Exchange adjustments | (37) | 137 | |
Capitalised borrowing costs | 2 | 4 | |
Other additions | 233 | 238 | |
Disposals and asset write-offs | (217) | (389) | |
Transfer to assets held for sale | (1) | (1) | |
Reclassifications | 38 | 139 | |
Ending Balance | 2,174 | 2,156 | 2,028 |
Computer software [member] | Amortisation [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (1,184) | (1,294) | |
Exchange adjustments | 25 | (92) | |
Charge for the year | (163) | (152) | |
Disposals and asset write-offs | 210 | 353 | |
Transfer to assets held for sale | 1 | 1 | |
Ending Balance | (1,111) | (1,184) | (1,294) |
Computer software [member] | Impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (9) | (39) | |
Exchange adjustments | (3) | ||
Impairment losses | (2) | (2) | |
Disposals and asset write-offs | 2 | 35 | |
Ending Balance | (9) | (9) | (39) |
Computer software [member] | Amortisation and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (1,193) | ||
Ending Balance | (1,120) | (1,193) | |
Licences and franchises [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | 8,508 | 7,925 | |
Ending Balance | 7,658 | 8,508 | 7,925 |
Licences and franchises [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | 15,143 | 13,394 | |
Exchange adjustments | (215) | 1,139 | |
Capitalised development costs | 251 | 219 | |
Capitalised borrowing costs | 3 | ||
Additions through business combinations | 102 | ||
Other additions | 221 | 349 | |
Disposals and asset write-offs | (38) | (21) | |
Transfer to assets held for sale | (90) | (39) | |
Ending Balance | 15,275 | 15,143 | 13,394 |
Licences and franchises [member] | Amortisation [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (4,983) | (4,030) | |
Exchange adjustments | 141 | (410) | |
Charge for the year | (761) | (553) | |
Disposals and asset write-offs | 25 | ||
Transfer to assets held for sale | 25 | 10 | |
Ending Balance | (5,553) | (4,983) | (4,030) |
Licences and franchises [member] | Impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (1,652) | (1,439) | |
Exchange adjustments | 110 | (266) | |
Impairment losses | (546) | (15) | |
Disposals and asset write-offs | 5 | 40 | |
Transfer to assets held for sale | 19 | 28 | |
Ending Balance | (2,064) | (1,652) | (1,439) |
Licences and franchises [member] | Amortisation and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (6,635) | ||
Ending Balance | (7,617) | (6,635) | |
Amortised brands [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | 60 | 100 | |
Ending Balance | 112 | 60 | 100 |
Amortised brands [member] | Cost [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | 427 | 387 | |
Exchange adjustments | (4) | 20 | |
Capitalised development costs | 21 | ||
Disposals and asset write-offs | (1) | ||
Reclassifications | 66 | ||
Ending Balance | 489 | 427 | 387 |
Amortised brands [member] | Amortisation [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (224) | (133) | |
Exchange adjustments | (5) | ||
Charge for the year | (10) | (91) | |
Disposals and asset write-offs | 5 | ||
Ending Balance | (234) | (224) | (133) |
Amortised brands [member] | Impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (143) | (154) | |
Disposals and asset write-offs | 11 | ||
Ending Balance | (143) | (143) | £ (154) |
Amortised brands [member] | Amortisation and impairment [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Beginning Balance | (367) | ||
Ending Balance | £ (377) | £ (367) |
Other Intangible Assets - Addit
Other Intangible Assets - Additional information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of detailed information about intangible assets [line items] | ||
Weighted average interest rate for capitalised borrowing costs | 4.00% | 3.80% |
Intangible assets, for which impairments have been charged or reversed | £ 300 | £ 116 |
Discount rate equal to post-tax WACC | 7.00% | 7.00% |
Bottom of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Terminal growth rate, estimates of future long-term average growth rate | 0.00% | |
Top of range [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Terminal growth rate, estimates of future long-term average growth rate | 5.00% | |
Internally generated [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Net book value of computer software | £ 669 | £ 620 |
Other Intangible Assets - Sched
Other Intangible Assets - Schedule of Amortisation and Impairment Losses, Net of Reversals (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation of intangible assets | £ 934 | £ 796 | £ 738 |
Impairment of intangible assets, net of reversals | 690 | 22 | £ 217 |
Cost of sales [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation of intangible assets | 578 | 582 | |
Impairment of intangible assets, net of reversals | 400 | 7 | |
Selling, general and administrative expenses [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation of intangible assets | 116 | 95 | |
Impairment of intangible assets, net of reversals | 2 | 2 | |
Research and development [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Amortisation of intangible assets | 240 | 119 | |
Impairment of intangible assets, net of reversals | £ 278 | £ 13 |
Other Intangible Assets - Su144
Other Intangible Assets - Summary of Book Values of Largest Individual Items (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Other intangible assets | £ 17,562 | £ 18,776 | £ 16,672 |
Licences and franchises [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Other intangible assets | 7,658 | 8,508 | £ 7,925 |
Licences and franchises [member] | Meningitis Portfolio [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Other intangible assets | 2,450 | 2,511 | |
Licences and franchises [member] | dolutegravir [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Other intangible assets | 1,389 | 1,487 | |
Licences and franchises [member] | Benlysta [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Other intangible assets | 965 | 1,019 | |
Licences and franchises [member] | Fluarix fluLaval [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Other intangible assets | 321 | 380 | |
Licences and franchises [member] | HIV assets acquired from BMS [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Other intangible assets | 277 | 277 | |
Licences and franchises [member] | Selzentry [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Other intangible assets | 162 | 188 | |
Licences and franchises [member] | Okairos technology platform [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Other intangible assets | 202 | 173 | |
Licences and franchises [member] | Others products [member] | |||
Disclosure of reconciliation of changes in intangible assets and goodwill [line items] | |||
Other intangible assets | £ 1,892 | £ 2,473 |
Other Intangible Assets - Su145
Other Intangible Assets - Summary of Book Values of Major Brands (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | £ 8,738 | £ 9,245 |
Voltaren [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 2,716 | 2,847 |
Otrivin [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 1,380 | 1,447 |
Fenistil [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 648 | 680 |
Theraflu [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 441 | 462 |
Panadol [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 386 | 354 |
Sensodyne [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 265 | 243 |
Lamisil [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 289 | 304 |
Breathe Right [Member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 236 | 199 |
Stiefel trade name [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 228 | 211 |
Excedrin [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 185 | 194 |
Physiogel [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 166 | 166 |
Polident [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | 112 | 103 |
Other Brands [member] | ||
Disclosure of detailed information about intangible assets [line items] | ||
Indefinite life brands | £ 1,686 | £ 2,035 |
Investments in Associates an146
Investments in Associates and Joint Ventures - Summary of Investments in Associates and Joint Ventures (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Investments in Associates and Joint Ventures [Line Items] | |||
Beginning of investments | £ 263 | £ 207 | |
Exchange adjustments | (12) | 45 | |
Additions | 15 | 11 | |
Disposals | (92) | ||
Distributions received | (2) | (3) | |
Other movements | (2) | (2) | |
(Loss)/profit after tax recognised in the consolidated income statement | 13 | 5 | £ 14 |
Beginning of investments | 183 | 263 | 207 |
Joint ventures [member] | |||
Disclosure of Investments in Associates and Joint Ventures [Line Items] | |||
Beginning of investments | 19 | 20 | |
Exchange adjustments | (2) | 4 | |
Additions | 3 | ||
Distributions received | (1) | (2) | |
Other movements | (2) | ||
(Loss)/profit after tax recognised in the consolidated income statement | (3) | (4) | (2) |
Beginning of investments | 13 | 19 | 20 |
Associates [member] | |||
Disclosure of Investments in Associates and Joint Ventures [Line Items] | |||
Beginning of investments | 244 | 187 | |
Exchange adjustments | (10) | 41 | |
Additions | 15 | 8 | |
Disposals | (92) | ||
Distributions received | (1) | (1) | |
Other movements | (2) | ||
(Loss)/profit after tax recognised in the consolidated income statement | 16 | 9 | |
Beginning of investments | £ 170 | £ 244 | £ 187 |
Investments in Associates an147
Investments in Associates and Joint Ventures - Additional Information (Detail) £ in Millions, shares in Millions | 12 Months Ended | |
Dec. 31, 2017GBP (£)_Associateshares | Dec. 31, 2016GBP (£) | |
Disclosure of Investments in Associates and Joint Ventures [Line Items] | ||
Number of shares owned | shares | 32 | |
Percentage of shares owned | 0.00% | |
Percentage of interest in royalty | 85.00% | |
Innoviva Inc [member] | ||
Disclosure of Investments in Associates and Joint Ventures [Line Items] | ||
Significant associate | _Associate | 1 | |
Market value of investment | £ | £ 336 | £ 278 |
Theravance Biopharma Inc [member] | ||
Disclosure of Investments in Associates and Joint Ventures [Line Items] | ||
Percentage of common stock | 17.80% |
Investments in Associates an148
Investments in Associates and Joint Ventures - Summary of Balance Sheet Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Investments in Associates and Joint Ventures [Line Items] | |||
Non-current assets | £ 40,474 | £ 42,370 | |
Current assets | 15,907 | 16,711 | |
Current liabilities | (26,569) | (19,001) | |
Non-current liabilities | (26,323) | (35,117) | |
Net liabilities | (3,489) | (4,963) | |
Goodwill | 5,734 | 5,965 | £ 5,162 |
Innoviva Inc [member] | |||
Disclosure of Investments in Associates and Joint Ventures [Line Items] | |||
Non-current assets | 124 | 146 | |
Current assets | 148 | 160 | |
Current liabilities | (26) | (16) | |
Non-current liabilities | (426) | (575) | |
Net liabilities | (180) | (285) | |
Interest in associated undertaking | (57) | (84) | |
Goodwill | 86 | 84 | |
Fair value and other adjustments | 118 | 138 | |
Carrying value at 31 December | £ 147 | £ 138 |
Other Investments - Schedule of
Other Investments - Schedule of Other Investments (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other investments 1 [abstract] | ||
Beginning of other investments | £ 985 | £ 1,255 |
Exchange adjustments | (64) | 211 |
Additions | 80 | 96 |
Net fair value movements | 11 | 130 |
Impairment losses | (30) | (24) |
Disposals | (64) | (683) |
Ending of other investments | £ 918 | £ 985 |
Other Investments - Additional
Other Investments - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other investments [line items] | ||
Listed investments | £ 535 | £ 580 |
Theravance Biopharma Inc [member] | ||
Other investments [line items] | ||
Percentage of common stock held | 17.80% | |
Investment fair value | £ 199 | £ 248 |
Other Investments - Schedule151
Other Investments - Schedule of Carrying Value of Other Investments (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Other investments 1 [abstract] | ||
Carrying value at original cost | £ 475 | £ 515 |
Cumulative impairments recognised in the income statement | (283) | (314) |
Subsequent fair value increases | 210 | 282 |
Carrying value, ending balance | £ 402 | £ 475 |
Other Non-Current Assets - Summ
Other Non-Current Assets - Summary of Other Non-Current Assets (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Miscellaneous non-current assets [abstract] | ||
Amounts receivable under insurance contracts | £ 648 | £ 602 |
Pension schemes in surplus | 538 | 313 |
Other receivables | 227 | 284 |
Total | £ 1,413 | £ 1,199 |
Inventories - Summary of Invent
Inventories - Summary of Inventories (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Classes of current inventories [abstract] | ||
Raw materials and consumables | £ 1,193 | £ 1,068 |
Work in progress | 2,381 | 2,299 |
Finished goods | 1,983 | 1,735 |
Total | £ 5,557 | £ 5,102 |
Trade and Other Receivables - S
Trade and Other Receivables - Summary of Trade and Other Receivables (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and other receivables [abstract] | ||
Trade receivables, net of provision for bad and doubtful debts | £ 4,672 | £ 4,615 |
Accrued income | 21 | 64 |
Other prepayments | 308 | 335 |
Interest receivable | 10 | 11 |
Employee loans and advances | 19 | 17 |
Other receivables | 970 | 984 |
Total trade and other receivables | £ 6,000 | £ 6,026 |
Trade and other receivables - A
Trade and other receivables - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of trade and other receivables [line items] | ||
Trade receivables | £ 4,672 | £ 4,615 |
Other receivables | 970 | 984 |
Associates and joint ventures [member] | ||
Disclosure of trade and other receivables [line items] | ||
Trade receivables | 11 | 9 |
Other receivables | £ 7 | £ 7 |
Trade and Other Receivables 156
Trade and Other Receivables - Summary of Bad and Doubtful Debt Provision (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Trade and other receivables [abstract] | ||
Beginning Balance | £ 207 | £ 167 |
Exchange adjustments | (4) | 23 |
Charge for the year | 31 | 77 |
Subsequent recoveries of amounts provided for | (79) | (59) |
Utilised | (15) | (1) |
Ending Balance | £ 140 | £ 207 |
Cash and cash equivalents - Sum
Cash and cash equivalents - Summary of Cash and Cash Equivalents (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Cash and cash equivalents [abstract] | |||
Cash at bank and in hand | £ 826 | £ 1,462 | |
Short-term deposits | 3,007 | 3,435 | |
Total cash and cash equivalents | £ 3,833 | £ 4,897 | £ 5,830 |
Assets Held for Sale - Summary
Assets Held for Sale - Summary of Assets Held for Sale (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets Held For Sale [Line Items] | |||
Property, plant and equipment | £ 10,860 | £ 10,808 | £ 9,668 |
Goodwill | 5,734 | 5,965 | £ 5,162 |
Inventory | 5,557 | 5,102 | |
Total assets held for sale | 113 | 215 | |
Assets held for sale [member] | |||
Assets Held For Sale [Line Items] | |||
Property, plant and equipment | 57 | 184 | |
Goodwill | 13 | ||
Other intangibles | 49 | 12 | |
Inventory | 7 | 7 | |
Other | (1) | ||
Total assets held for sale | £ 113 | £ 215 |
Assets Held for Sale - Addition
Assets Held for Sale - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible impairments | £ 690 | £ 22 | £ 217 |
PP&E impairments | 327 | 180 | £ 346 |
PP&E impairment reversals | 33 | 171 | |
Financial assets written down to fair value | 10,906 | 11,987 | |
Other intangible assets [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Intangible impairments | 31 | ||
Intangible impairment reversals | 21 | ||
PPE [Member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
PP&E impairments | 10 | ||
PP&E impairment reversals | 15 | ||
Assets held for sale [member] | Level 3 [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Financial assets written down to fair value | £ 63 | £ 79 |
Trade and Other Payables - Summ
Trade and Other Payables - Summary of Trade and Other Payables (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of trade and other payables [Line Items] | ||
Trade payables | £ 3,528 | £ 3,596 |
Wages and salaries | 1,228 | 1,236 |
Social security | 166 | 120 |
Deferred income | 240 | 158 |
Customer return and rebate accruals | 3,463 | 2,778 |
Other accruals | 2,072 | 2,310 |
Total trade and other payables | 20,970 | 11,964 |
Consumer Healthcare [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Consumer Healthcare put option | 8,606 | |
Shionogi-ViiV Healthcare [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Consumer Healthcare put option | 1,304 | 1,319 |
Other payables | £ 363 | £ 447 |
Trade and Other Payables - Addi
Trade and Other Payables - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of trade and other payables [Line Items] | ||
Trade and other current payables | £ 20,970 | £ 11,964 |
Customer return and rebate accruals | £ 3,463 | 2,778 |
Discount rate payable stated percentage | 7.00% | |
Reimbursement charges | £ 1,186 | 1,133 |
Estimated rebates, discounts or allowances payable to customers [member] | US Pharmaceuticals and vaccines [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Customer return and rebate accruals | 2,837 | 2,218 |
Associates and joint ventures [member] | ||
Disclosure of trade and other payables [Line Items] | ||
Trade and other current payables | £ 53 | £ 36 |
Trade and Other Payables - S162
Trade and Other Payables - Summary of Increase/(Decrease) in Financial Liability and Loss/(Gain) in Income Statement (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Novartis put option [member] | 10% increase in sales forecasts or sales multiple applied [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | £ 850 |
Loss/(gain) in Income statement | 850 |
Novartis put option [member] | 10% decrease in sales forecasts or sales multiple applied [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | (850) |
Loss/(gain) in Income statement | (850) |
Novartis put option [member] | 10 cent appreciation of the US Dollar [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | 88 |
Loss/(gain) in Income statement | 88 |
Novartis put option [member] | 10 cent depreciation of US Dollar [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | (76) |
Loss/(gain) in Income statement | (76) |
Novartis put option [member] | 10 cent appreciation of the Euro [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | 303 |
Loss/(gain) in Income statement | 303 |
Novartis put option [member] | 10 cent depreciation of Euro [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | (254) |
Loss/(gain) in Income statement | (254) |
Pfizer's put option [member] | 10% increase in sales forecasts or sales multiple applied [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | 150 |
Loss/(gain) in Income statement | 150 |
Pfizer's put option [member] | 10% decrease in sales forecasts or sales multiple applied [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | (149) |
Loss/(gain) in Income statement | (149) |
Pfizer's put option [member] | 10 cent appreciation of the US Dollar [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | 76 |
Loss/(gain) in Income statement | 76 |
Pfizer's put option [member] | 10 cent depreciation of US Dollar [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | (66) |
Loss/(gain) in Income statement | (66) |
Pfizer's put option [member] | 10 cent appreciation of the Euro [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | 44 |
Loss/(gain) in Income statement | 44 |
Pfizer's put option [member] | 10 cent depreciation of Euro [member] | |
Disclosure of information about activities subject to rate regulation [line items] | |
Increase/(decrease) in financial liability | (37) |
Loss/(gain) in Income statement | £ (37) |
Pensions and Other Post-empl163
Pensions and Other Post-employment Benefits - Summary of Pension and Other Post-employment Costs (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of pension and other post employment plan [Line Items] | |||
Cost of sales | £ 10,342 | £ 9,290 | £ 8,853 |
Selling, general and administration | 9,672 | 9,366 | 9,232 |
Research and development | 4,476 | 3,628 | 3,560 |
Pension and other post-employment cost | 616 | 541 | 467 |
Pension and other post-employment cost | 616 | 541 | 467 |
UK Defined Benefit Plans [member] | |||
Disclosure of pension and other post employment plan [Line Items] | |||
Defined benefit pension and post retirement cost | 198 | 205 | 177 |
US Defined Benefit Plans [member] | |||
Disclosure of pension and other post employment plan [Line Items] | |||
Defined benefit pension and post retirement cost | 113 | 106 | 96 |
Other overseas pension schemes [member] | |||
Disclosure of pension and other post employment plan [Line Items] | |||
Pension and other post-employment cost | 218 | 140 | 135 |
Pension and other post-employment cost | 218 | 140 | 135 |
Unfunded post-retirement healthcare schemes [member] | |||
Disclosure of pension and other post employment plan [Line Items] | |||
Defined benefit pension and post retirement cost | 87 | 90 | 59 |
Pension and other post-employment cost Analysed | 87 | 90 | 59 |
Funded defined benefit/hybrid pension schemes [member] | |||
Disclosure of pension and other post employment plan [Line Items] | |||
Pension and other post-employment cost Analysed | 335 | 304 | 291 |
Unfunded defined benefit pension schemes [member] | |||
Disclosure of pension and other post employment plan [Line Items] | |||
Pension and other post-employment cost Analysed | 55 | 43 | 36 |
Defined benefit pension and post-retirement healthcare scheme. [member] | |||
Disclosure of pension and other post employment plan [Line Items] | |||
Cost of sales | 162 | 135 | 127 |
Selling, general and administration | 238 | 221 | 194 |
Research and development | 77 | 81 | 65 |
Defined benefit pension and post retirement cost | 477 | 437 | 386 |
Defined benefit schemes [member] | |||
Disclosure of pension and other post employment plan [Line Items] | |||
Pension and other post-employment cost Analysed | 477 | 437 | 386 |
Defined contribution pension scheme [member] | |||
Disclosure of pension and other post employment plan [Line Items] | |||
Pension and other post-employment cost Analysed | £ 139 | £ 104 | £ 81 |
Pensions and Other Post-empl164
Pensions and Other Post-employment Benefits - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of Pensions and Other Post-employment Benefits [Line Items] | ||||
Long term rate of improvement per year | 1.25% | |||
Special contributions | £ (444) | £ (481) | £ (408) | |
Pension schemes [member] | ||||
Disclosure of Pensions and Other Post-employment Benefits [Line Items] | ||||
Employer contributions | £ 360 | |||
Post-retirement benefits [member] | ||||
Disclosure of Pensions and Other Post-employment Benefits [Line Items] | ||||
Employer contributions | 90 | |||
UK [member] | ||||
Disclosure of Pensions and Other Post-employment Benefits [Line Items] | ||||
Rate of return on assets | 55.00% | |||
Rate of liability matching assets | 45.00% | |||
Special contributions | £ 136 | 191 | 85 | |
UK [member] | Pension schemes [member] | ||||
Disclosure of Pensions and Other Post-employment Benefits [Line Items] | ||||
Special contributions | £ 123 | |||
UK [member] | Other assets [member] | ||||
Disclosure of Pensions and Other Post-employment Benefits [Line Items] | ||||
Loans on structured debt amount contributed to fair value of plan assets | £ (773) | (1,698) | (2,215) | |
US [member] | ||||
Disclosure of Pensions and Other Post-employment Benefits [Line Items] | ||||
Rate of return on assets | 55.00% | |||
Rate of liability matching assets | 45.00% | |||
Special contributions | £ 78 | £ 0 | 111 | |
Assumption for future medical inflation | 6.75% | 7.00% | ||
US [member] | 2025 and thereafter [member] | ||||
Disclosure of Pensions and Other Post-employment Benefits [Line Items] | ||||
Assumption for future medical inflation | 5.00% | |||
US [member] | Unfunded [member] | ||||
Disclosure of Pensions and Other Post-employment Benefits [Line Items] | ||||
US post retirement healthcare scheme obligation | £ 1,254 | £ 1,463 | £ 1,208 |
Pensions and Other Post-empl165
Pensions and Other Post-employment Benefits - Summary of Average Life Expectancy Assumed (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
UK [member] | Current. [member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Male Years | 27 years 6 months |
Female Years | 29 years 6 months |
UK [member] | Projected for 2037 [member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Male Years | 29 years 1 month 6 days |
Female Years | 31 years 1 month 6 days |
US [member] | Current. [member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Male Years | 26 years 10 months 25 days |
Female Years | 28 years 7 months 6 days |
US [member] | Projected for 2037 [member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Male Years | 28 years 7 months 6 days |
Female Years | 30 years 3 months 19 days |
Pensions and Other Post-empl166
Pensions and Other Post-employment Benefits - Summary of Financial Assumptions in Assessing Defined Benefit Liabilities (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Defined Benefit Plan Actuarial Assumptions [line items] | |||
Discount rate | 7.00% | ||
UK [member] | |||
Disclosure Of Defined Benefit Plan Actuarial Assumptions [line items] | |||
Rate of increase of future earnings | 2.00% | 2.00% | 2.00% |
Discount rate | 2.50% | 2.70% | 3.80% |
Expected pension increases | 3.20% | 3.20% | 3.10% |
Inflation rate | 3.20% | 3.20% | 3.10% |
US [member] | |||
Disclosure Of Defined Benefit Plan Actuarial Assumptions [line items] | |||
Rate of increase of future earnings | 4.00% | 4.00% | 4.00% |
Discount rate | 3.60% | 3.90% | 4.20% |
Cash balance credit/conversion rate | 2.90% | 3.20% | 3.20% |
Inflation rate | 2.25% | 2.25% | 2.25% |
Rest of world. [member] | |||
Disclosure Of Defined Benefit Plan Actuarial Assumptions [line items] | |||
Rate of increase of future earnings | 2.80% | 2.70% | 2.70% |
Discount rate | 1.60% | 1.60% | 2.20% |
Expected pension increases | 2.20% | 2.10% | 2.00% |
Cash balance credit/conversion rate | 0.30% | 0.30% | 0.60% |
Inflation rate | 1.70% | 1.50% | 1.40% |
Pensions and Other Post-empl167
Pensions and Other Post-employment Benefits - Summary of Amounts Recorded in Income Statement and Statement of Comprehensive Income Related to Defined Benefit Pension and Post-retirement Healthcare Schemes (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Current service cost | £ (280) | £ (246) | £ (254) |
Past service cost | (37) | (54) | (17) |
Net interest (credit)/cost | 54 | 56 | 49 |
Gains from settlements | (28) | (8) | |
Remeasurement gains/(losses) recorded in the statement of comprehensive income | 549 | (475) | 261 |
Pensions. [member] | Defined benefit pension and post-retirement healthcare scheme. [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Current service cost | 280 | 246 | 254 |
Past service cost | 37 | 54 | 17 |
Net interest (credit)/cost | 54 | 56 | 49 |
Gains from settlements | (28) | (8) | |
Expenses | 19 | 19 | 15 |
Net operating cost | 390 | 347 | 327 |
Remeasurement gains/(losses) recorded in the statement of comprehensive income | 485 | (416) | 199 |
Post-retirement benefits [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Current service cost | (30) | (31) | (22) |
Past service cost | 2 | (3) | 8 |
Net interest (credit)/cost | (59) | (56) | (52) |
Gains from settlements | 7 | ||
Post-retirement benefits [member] | Defined benefit pension and post-retirement healthcare scheme. [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Current service cost | 30 | 31 | 22 |
Past service cost | (2) | 3 | (8) |
Net interest (credit)/cost | 59 | 56 | 52 |
Gains from settlements | (7) | ||
Net operating cost | 87 | 90 | 59 |
Remeasurement gains/(losses) recorded in the statement of comprehensive income | 64 | (59) | 62 |
UK [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Current service cost | (79) | (70) | (77) |
Past service cost | (37) | (52) | (25) |
Net interest (credit)/cost | (340) | (394) | (388) |
UK [member] | Defined benefit pension and post-retirement healthcare scheme. [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Current service cost | 79 | 70 | 77 |
Past service cost | 37 | 52 | 25 |
Net interest (credit)/cost | 7 | 9 | 14 |
Expenses | 7 | 7 | 7 |
Net operating cost | 130 | 138 | 123 |
Remeasurement gains/(losses) recorded in the statement of comprehensive income | 259 | (165) | 82 |
US [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Current service cost | (70) | (66) | (67) |
Past service cost | (1) | (2) | |
Net interest (credit)/cost | (135) | (135) | (117) |
Gains from settlements | (1) | ||
US [member] | Defined benefit pension and post-retirement healthcare scheme. [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Current service cost | 70 | 66 | 67 |
Past service cost | 1 | 2 | |
Net interest (credit)/cost | 31 | 27 | 22 |
Gains from settlements | 1 | ||
Expenses | 12 | 12 | 4 |
Net operating cost | 113 | 106 | 96 |
Remeasurement gains/(losses) recorded in the statement of comprehensive income | 240 | (27) | (30) |
Rest of world. [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Current service cost | (131) | (110) | (110) |
Past service cost | (1) | 10 | |
Net interest (credit)/cost | (49) | (57) | (46) |
Gains from settlements | 4 | 138 | 25 |
Rest of world. [member] | Defined benefit pension and post-retirement healthcare scheme. [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Current service cost | 131 | 110 | 110 |
Past service cost | 1 | (10) | |
Net interest (credit)/cost | 16 | 20 | 13 |
Gains from settlements | (28) | (9) | |
Expenses | 4 | ||
Net operating cost | 147 | 103 | 108 |
Remeasurement gains/(losses) recorded in the statement of comprehensive income | £ (14) | £ (224) | £ 147 |
Pensions and Other Post-empl168
Pensions and Other Post-employment Benefits - Summary of Balance Sheet Presentation of Group Defined Benefit Pension Schemes and Other Post-retirement Benefits (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Post-retirement benefits/Pension schemes in deficit and surplus | £ 538 | £ 313 | |
Benefit plans | (3,539) | (4,090) | £ (3,229) |
Other non-current assets [member] | Pension schemes [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Post-retirement benefits/Pension schemes in deficit and surplus | 538 | 313 | 258 |
Pensions and other post-employment benefits [member] | Pension schemes [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Post-retirement benefits/Pension schemes in deficit and surplus | (2,043) | (2,397) | (1,842) |
Pensions and other post-employment benefits [member] | Post-retirement benefits [member] | |||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | |||
Post-retirement benefits/Pension schemes in deficit and surplus | £ (1,496) | £ (1,693) | £ (1,387) |
Pensions and Other Post-empl169
Pensions and Other Post-employment Benefits - Fair Values of Assets and Liabilities of UK and US Defined Benefit Pension Schemes Together with Aggregated Data for Other Defined Benefit Pension Schemes in Group (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Present value of scheme obligations | £ 19,785 | £ 19,654 | £ 16,119 | |
Actual return on plan assets | (899) | (2,195) | 526 | |
Group.[member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Equities, listed | 6,894 | 7,201 | 6,777 | |
Equity, unlisted | 13 | 14 | 1 | |
Multi-asset funds | 2,517 | 1,545 | 481 | |
Property, unlisted | 593 | 558 | 485 | |
Corporate bonds, listed | 1,220 | 601 | 1,054 | |
Corporate bonds, unlisted | 346 | 345 | 234 | |
Government bonds, listed | 6,128 | 7,719 | 6,535 | |
Insurance contracts | 1,556 | 1,493 | 1,194 | |
Other assets | (987) | (1,906) | (2,226) | |
Fair value of assets | 18,280 | 17,570 | 14,535 | |
Present value of scheme obligations | (19,785) | (19,654) | (16,119) | |
Net surplus/(obligation) | (1,505) | (2,084) | (1,584) | |
Net surplus/(obligation) | (1,505) | (2,084) | (1,584) | |
Actual return on plan assets | 1,369 | 2,725 | (24) | |
Group.[member] | Other non-current assets [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Net surplus/(obligation) | 538 | 313 | 258 | |
Net surplus/(obligation) | 538 | 313 | 258 | |
Group.[member] | Pensions and other post-employment benefits [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Net surplus/(obligation) | (2,043) | (2,397) | (1,842) | |
Net surplus/(obligation) | (2,043) | (2,397) | (1,842) | |
UK [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Equities, listed | 4,902 | 5,357 | 5,187 | |
Multi-asset funds | 2,517 | 1,545 | 481 | |
Property, unlisted | 352 | 314 | 302 | |
Corporate bonds, listed | 297 | 292 | 251 | |
Corporate bonds, unlisted | 326 | 321 | 232 | |
Government bonds, listed | 5,127 | 6,165 | 5,687 | |
Insurance contracts | 849 | 856 | 755 | |
Other assets | (1,216) | (2,267) | (2,611) | |
Fair value of assets | 13,154 | 12,583 | 10,284 | |
Present value of scheme obligations | (13,101) | (12,884) | (10,601) | £ (10,991) |
Net surplus/(obligation) | 53 | (301) | (317) | |
Net surplus/(obligation) | 53 | (301) | (317) | |
Actual return on plan assets | 893 | 2,473 | (17) | |
UK [member] | Other non-current assets [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Net surplus/(obligation) | 470 | 276 | 232 | |
Net surplus/(obligation) | 470 | 276 | 232 | |
UK [member] | Pensions and other post-employment benefits [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Net surplus/(obligation) | (417) | (577) | (549) | |
Net surplus/(obligation) | (417) | (577) | (549) | |
US [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Equities, listed | 1,448 | 1,358 | 1,235 | |
Property, unlisted | 209 | 216 | 175 | |
Corporate bonds, listed | 820 | 213 | 727 | |
Government bonds, listed | 239 | 815 | 184 | |
Other assets | 158 | 288 | 180 | |
Fair value of assets | 2,874 | 2,890 | 2,501 | |
Present value of scheme obligations | (3,445) | (3,752) | (3,134) | (3,133) |
Net surplus/(obligation) | (571) | (862) | (633) | |
Net surplus/(obligation) | (571) | (862) | (633) | |
Actual return on plan assets | 394 | 153 | (30) | |
US [member] | Pensions and other post-employment benefits [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Net surplus/(obligation) | (571) | (862) | (633) | |
Net surplus/(obligation) | (571) | (862) | (633) | |
Rest of world. [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Equities, listed | 544 | 486 | 355 | |
Equity, unlisted | 13 | 14 | 1 | |
Property, unlisted | 32 | 28 | 8 | |
Corporate bonds, listed | 103 | 96 | 76 | |
Corporate bonds, unlisted | 20 | 24 | 2 | |
Government bonds, listed | 762 | 739 | 664 | |
Insurance contracts | 707 | 637 | 439 | |
Other assets | 71 | 73 | 205 | |
Fair value of assets | 2,252 | 2,097 | 1,750 | |
Present value of scheme obligations | (3,239) | (3,018) | (2,384) | £ (2,176) |
Net surplus/(obligation) | (987) | (921) | (634) | |
Net surplus/(obligation) | (987) | (921) | (634) | |
Actual return on plan assets | 82 | 99 | 23 | |
Rest of world. [member] | Other non-current assets [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Net surplus/(obligation) | 68 | 37 | 26 | |
Net surplus/(obligation) | 68 | 37 | 26 | |
Rest of world. [member] | Pensions and other post-employment benefits [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Net surplus/(obligation) | (1,055) | (958) | (660) | |
Net surplus/(obligation) | £ (1,055) | £ (958) | £ (660) |
Pensions and Other Post-empl170
Pensions and Other Post-employment Benefits - Summary of Movements in Fair Values of Assets (Detail) - GBP (£) £ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Obligations at 1 January 2015 | £ 19,785 | £ 19,654 | £ 16,119 | |
Exchange adjustments | (40) | 218 | £ 11 | |
Additions through business combinations | (164) | |||
Service cost | (280) | (246) | (254) | |
Past service cost | (37) | (54) | (17) | |
Interest cost | 54 | 56 | 49 | |
Settlements and curtailments | (28) | (8) | ||
Employer contributions | (444) | (481) | (408) | |
Obligations at 31 December 2015 | 19,785 | 19,654 | 16,119 | |
UK [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Assets, beginning balance | 13,154 | 12,583 | 10,284 | |
Obligations at 1 January 2015 | (13,101) | (12,884) | (10,601) | (10,991) |
Service cost | (79) | (70) | (77) | |
Past service cost | (37) | (52) | (25) | |
Interest cost | (340) | (394) | (388) | |
Remeasurement | (301) | (2,253) | 473 | |
Employer contributions | 136 | 191 | 85 | |
Scheme participants' contributions | (4) | (4) | (4) | |
Benefits paid | 544 | 490 | 411 | |
Assets at 31 December 2016 | 13,154 | 12,583 | 10,284 | |
Obligations at 31 December 2015 | (13,101) | (12,884) | (10,601) | |
UK [member] | Plan Assets [Member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Assets, beginning balance | 13,154 | 12,583 | 10,284 | 10,551 |
Interest cost | 333 | 385 | 374 | |
Expenses | (7) | (7) | (7) | |
Remeasurement | 560 | 2,088 | (391) | |
Employer contributions | 225 | 319 | 164 | |
Scheme participants' contributions | 4 | 4 | 4 | |
Benefits paid | (544) | (490) | (411) | |
Assets at 31 December 2016 | 13,154 | 12,583 | 10,284 | |
US [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Assets, beginning balance | 2,874 | 2,890 | 2,501 | |
Obligations at 1 January 2015 | (3,445) | (3,752) | (3,134) | (3,133) |
Exchange adjustments | (305) | 586 | 184 | |
Service cost | (70) | (66) | (67) | |
Past service cost | (1) | (2) | ||
Interest cost | (135) | (135) | (117) | |
Settlements and curtailments | (1) | |||
Remeasurement | (50) | (72) | 95 | |
Employer contributions | 78 | 0 | 111 | |
Benefits paid | 257 | 242 | 275 | |
Assets at 31 December 2016 | 2,874 | 2,890 | 2,501 | |
Obligations at 31 December 2015 | (3,445) | (3,752) | (3,134) | |
US [member] | Plan Assets [Member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Assets, beginning balance | 2,874 | 2,890 | 2,501 | 2,531 |
Exchange adjustments | (244) | 459 | 147 | |
Interest cost | 104 | 108 | 95 | |
Expenses | (12) | (12) | (4) | |
Remeasurement | 290 | 45 | (125) | |
Employer contributions | 103 | 31 | 132 | |
Benefits paid | (257) | (242) | (275) | |
Assets at 31 December 2016 | 2,874 | 2,890 | 2,501 | |
Rest of world. [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Assets, beginning balance | 2,252 | 2,097 | 1,750 | |
Obligations at 1 January 2015 | (3,239) | (3,018) | (2,384) | (2,176) |
Exchange adjustments | 45 | 396 | (78) | |
Additions through business combinations | (397) | |||
Service cost | (131) | (110) | (110) | |
Past service cost | (1) | 10 | ||
Interest cost | (49) | (57) | (46) | |
Settlements and curtailments | 4 | 138 | 25 | |
Remeasurement | (63) | (286) | 157 | |
Scheme participants' contributions | (17) | (14) | (14) | |
Benefits paid | 80 | 92 | 89 | |
Assets at 31 December 2016 | 2,252 | 2,097 | 1,750 | |
Obligations at 31 December 2015 | (3,239) | (3,018) | (2,384) | |
Rest of world. [member] | Plan Assets [Member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Assets, beginning balance | 2,252 | 2,097 | 1,750 | 1,529 |
Exchange adjustments | 24 | 305 | (52) | |
Additions through business combinations | 233 | |||
Interest cost | 33 | 37 | 33 | |
Expenses | (4) | |||
Settlements and curtailments | (4) | (110) | (16) | |
Remeasurement | 49 | 62 | (10) | |
Employer contributions | 116 | 131 | 112 | |
Scheme participants' contributions | 17 | 14 | 14 | |
Benefits paid | (80) | (92) | (89) | |
Assets at 31 December 2016 | 2,252 | 2,097 | 1,750 | |
Pension schemes [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Obligations at 1 January 2015 | (19,785) | (19,654) | (16,119) | (16,300) |
Exchange adjustments | (260) | 982 | 106 | |
Additions through business combinations | (397) | |||
Service cost | (280) | (246) | (254) | |
Past service cost | (37) | (54) | (17) | |
Interest cost | (524) | (586) | (551) | |
Settlements and curtailments | 4 | 138 | 24 | |
Remeasurement | (414) | (2,611) | 725 | |
Scheme participants' contributions | (21) | (18) | (18) | |
Benefits paid | 881 | 824 | 775 | |
Obligations at 31 December 2015 | (19,785) | (19,654) | (16,119) | |
Pension schemes [member] | Plan Assets [Member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Assets, beginning balance | 18,280 | 17,570 | 14,535 | 14,611 |
Exchange adjustments | (220) | 764 | 95 | |
Additions through business combinations | 233 | |||
Interest cost | 470 | 530 | 502 | |
Expenses | (19) | (19) | (15) | |
Settlements and curtailments | (4) | (110) | (16) | |
Remeasurement | 899 | 2,195 | (526) | |
Employer contributions | 444 | 481 | 408 | |
Scheme participants' contributions | 21 | 18 | 18 | |
Benefits paid | (881) | (824) | (775) | |
Assets at 31 December 2016 | 18,280 | 17,570 | 14,535 | |
Pension schemes [member] | UK [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Employer contributions | 123 | |||
Post-retirement benefits [member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Obligations at 1 January 2015 | £ (1,496) | (1,693) | (1,387) | (1,397) |
Exchange adjustments | (119) | 248 | 64 | |
Additions through business combinations | (11) | |||
Service cost | (30) | (31) | (22) | |
Past service cost | 2 | (3) | 8 | |
Interest cost | (59) | (56) | (52) | |
Settlements and curtailments | 7 | |||
Remeasurement | 64 | (59) | 62 | |
Scheme participants' contributions | (17) | (17) | (14) | |
Benefits paid | 118 | 108 | 96 | |
Obligations at 31 December 2015 | (1,496) | (1,693) | (1,387) | |
Post-retirement benefits [member] | Plan Assets [Member] | ||||
Disclosure Of Defined Benefit Pension And Post Retirement [Line Items] | ||||
Employer contributions | 101 | 91 | 82 | |
Scheme participants' contributions | 17 | 17 | 14 | |
Benefits paid | £ (118) | £ (108) | £ (96) |
Pensions and Other Post-empl171
Pensions and Other Post-employment Benefits - Summary of Analysis of Defined Benefit Pension Obligation (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation | £ (19,785) | £ (19,654) | £ (16,119) |
Funded [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation | (19,052) | (18,974) | (15,552) |
Unfunded [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation | £ (733) | £ (680) | £ (567) |
Pensions and Other Post-empl172
Pensions and Other Post-employment Benefits - Summary of Movement in Net Defined Benefit Liability (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of defined benefit plans [abstract] | |||
Beginning of net defined benefit liability | £ (2,084) | £ (1,584) | £ (1,689) |
Exchange adjustments | 40 | (218) | (11) |
Additions through business combinations | (164) | ||
Service cost | (280) | (246) | (254) |
Past service cost | (37) | (54) | (17) |
Interest cost | (54) | (56) | (49) |
Settlements and curtailments | 28 | 8 | |
Remeasurements: | |||
Return on plan assets, excluding amounts included in interest | 899 | 2,195 | (526) |
Gain/(loss) from change in demographic assumptions | 209 | 85 | 120 |
(Loss)/gain from change in financial assumptions | (555) | (2,770) | 362 |
Experience (losses)/gains | (68) | 74 | 243 |
Employer contributions | 444 | 481 | 408 |
Expenses/other movements | (19) | (19) | (15) |
Ending of net defined benefit liability | £ (1,505) | £ (2,084) | £ (1,584) |
Pensions and Other Post-Empl173
Pensions and Other Post-Employment Benefits - Summary of Remeasurements Within Post-Retirement Benefits (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net defined benefit liability (asset) [line items] | |||
Gain from change in demographic assumptions | £ (209) | £ (85) | £ (120) |
(Loss)/gain from change in financial assumptions | 555 | 2,770 | (362) |
Experience gains/(losses) | 68 | (74) | (243) |
Post-retirement benefits [member] | |||
Disclosure of net defined benefit liability (asset) [line items] | |||
Gain from change in demographic assumptions | 47 | 15 | |
(Loss)/gain from change in financial assumptions | (1) | (81) | 59 |
Experience gains/(losses) | 18 | 22 | (12) |
Total | £ 64 | £ (59) | £ 62 |
Pensions and Other Post-Empl174
Pensions and Other Post-Employment Benefits - Summary of Defined Benefit Pension Obligation Analysed by Membership Category (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Disclosure of defined benefit plans [line items] | |||
Defined benefit pension obligation analysed by membership category | £ 19,785 | £ 19,654 | £ 16,119 |
Pensions. [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit pension obligation analysed by membership category | 19,785 | 19,654 | 17,710 |
Active [member] | Pensions. [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit pension obligation analysed by membership category | 4,611 | 4,576 | 5,510 |
Retired [member] | Pensions. [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit pension obligation analysed by membership category | 9,805 | 9,574 | 7,969 |
Deferred [member] | Pensions. [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit pension obligation analysed by membership category | £ 5,369 | £ 5,504 | £ 4,231 |
Pensions and Other Post-Empl175
Pensions and Other Post-Employment Benefits - Summary of Post-Retirement Benefit Obligation Analysed by Membership Category (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of defined benefit plans [line items] | ||||
Post-retirement benefit obligation analysed by membership category | £ (19,785) | £ (19,654) | £ (16,119) | |
Post-retirement benefits [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Post-retirement benefit obligation analysed by membership category | 1,496 | 1,693 | 1,387 | £ 1,397 |
Active [member] | Post-retirement benefits [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Post-retirement benefit obligation analysed by membership category | 514 | 594 | 499 | |
Retired [member] | Post-retirement benefits [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Post-retirement benefit obligation analysed by membership category | 981 | £ 1,099 | 887 | |
Deferred [member] | Post-retirement benefits [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Post-retirement benefit obligation analysed by membership category | £ 1 | £ 1 |
Pensions and Other Post-Empl176
Pensions and Other Post-Employment Benefits - Summary of Weighted Average Duration Defined Benefit Obligation (Detail) - yr | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Pensions. [member] | |||
Disclosure of Information About Maturity Profile of Defined Benefit Obligation [Line Items] | |||
Weighted average duration of the defined benefit obligation | 16 | 16 | 16 |
Post retirement benefit [Member] | |||
Disclosure of Information About Maturity Profile of Defined Benefit Obligation [Line Items] | |||
Weighted average duration of the defined benefit obligation | 11 | 12 | 12 |
Pensions and Other Post-Empl177
Pensions and Other Post-Employment Benefits - Summary of Changes in Assumptions Used on Benefit Obligations, Defined Benefit Pension and Post Retirement Costs (Details) (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Increase in annual pension cost | £ 29 |
Actuarial assumption of discount rates [Member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Increase in annual pension cost | 29 |
Increase/Decrease in annual post-retirement benefits cost | (1) |
Increase in pension obligation | 800 |
Increase in post-retirement benefits obligation | 41 |
Actuarial assumption of life expectancy rates [Member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Increase in annual pension cost | 20 |
Increase/Decrease in annual post-retirement benefits cost | 2 |
Increase in pension obligation | 608 |
Increase in post-retirement benefits obligation | 39 |
Future assumptions rate for healthcare plans [Member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Increase/Decrease in annual post-retirement benefits cost | 2 |
Increase in post-retirement benefits obligation | 68 |
Actuarial assumption of expected rates of inflation [Member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Increase in annual pension cost | 19 |
Increase in pension obligation | £ 502 |
Pensions and Other Post-Empl178
Pensions and Other Post-Employment Benefits - Summary of Changes in Assumptions Used on Benefit Obligations, Defined Benefit Pension and Post Retirement Costs (Details) (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Decrease in discount rate | 7.00% |
Actuarial assumption of discount rates [Member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Decrease in discount rate | 0.25% |
Actuarial assumption of life expectancy rates [Member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Increase in life expectancy | 1 year |
Future assumptions rate for healthcare plans [Member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Increase in the rate of future healthcare inflation | 1.00% |
Actuarial assumption of expected rates of inflation [Member] | |
Disclosure of Sensitivity Analysis for Actuarial Assumptions [Line Items] | |
Increase in inflation | 0.25% |
Other Provisions - Summary of O
Other Provisions - Summary of Other Provisions (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other provisions [line items] | |||
Other provisions, beginning balance | £ 1,500 | ||
Exchange adjustments | (59) | ||
Charge for the year | 551 | ||
Reversed unused | (89) | ||
Unwinding of discount | 16 | ||
Utilised | (629) | ||
Reclassifications and other movements | (7) | ||
Transfer to Pension obligations | (18) | ||
Other provisions, ending balance | 1,265 | ||
To be settled within one year | £ 629 | £ 848 | |
To be settled after one year | 636 | 652 | |
Other provisions | 1,500 | 1,265 | 1,500 |
Legal and other disputes [member] | |||
Disclosure of other provisions [line items] | |||
Other provisions, beginning balance | 344 | ||
Exchange adjustments | (29) | ||
Charge for the year | 173 | ||
Reversed unused | (7) | ||
Unwinding of discount | 2 | ||
Utilised | (288) | ||
Reclassifications and other movements | (9) | ||
Other provisions, ending balance | 186 | ||
To be settled within one year | 138 | ||
To be settled after one year | 48 | ||
Other provisions | 344 | 186 | 344 |
Major Restructuring Programmes [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions, beginning balance | 554 | ||
Exchange adjustments | (16) | ||
Charge for the year | 259 | ||
Reversed unused | (43) | ||
Unwinding of discount | 4 | ||
Utilised | (233) | ||
Reclassifications and other movements | (3) | ||
Transfer to Pension obligations | (18) | ||
Other provisions, ending balance | 504 | ||
To be settled within one year | 292 | ||
To be settled after one year | 212 | ||
Other provisions | 554 | 504 | 554 |
Employee Related Provisions [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions, beginning balance | 306 | ||
Exchange adjustments | (8) | ||
Charge for the year | 50 | ||
Reversed unused | (3) | ||
Utilised | (41) | ||
Other provisions, ending balance | 304 | ||
To be settled within one year | 90 | ||
To be settled after one year | 214 | ||
Other provisions | 306 | 304 | 306 |
Other Provision [Member] | |||
Disclosure of other provisions [line items] | |||
Other provisions, beginning balance | 296 | ||
Exchange adjustments | (6) | ||
Charge for the year | 69 | ||
Reversed unused | (36) | ||
Unwinding of discount | 10 | ||
Utilised | (67) | ||
Reclassifications and other movements | 5 | ||
Other provisions, ending balance | 271 | ||
To be settled within one year | 109 | ||
To be settled after one year | 162 | ||
Other provisions | £ 296 | £ 271 | £ 296 |
Other provisions - Additional I
Other provisions - Additional Information (Detail) - GBP (£) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of other provisions [line items] | ||
Charges on other provisions | £ 551,000,000 | |
Discount on the provisions | 2,000,000 | £ 1,000,000 |
Short term legal proceedings | 138,000,000 | |
Legal proceedings and other disputes provision estimated | 0 | 0 |
Pension augmentations arising from staff redundancies | £ 18,000,000 | 23,000,000 |
Period for amounts provided are expected to be utilised | 2 years | |
Provision for employee benefits | £ 6,000,000 | 40,000,000 |
Onerous property lease provisions | 38,000,000 | 39,000,000 |
Disabled employees [member] | ||
Disclosure of other provisions [line items] | ||
Provision for employee benefits | 108,000,000 | £ 135,000,000 |
Legal and other disputes [member] | ||
Disclosure of other provisions [line items] | ||
Charges on other provisions | £ 173,000,000 |
Other Non-current Liabilities -
Other Non-current Liabilities - Summary of Other Noncurrent Liabilities (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Other non-current liabilities [abstract] | ||
Accruals and deferred income | £ 104 | £ 66 |
Consumer Healthcare put option liability | 7,420 | |
Other payables | 877 | 959 |
Other noncurrent liabilities | £ 981 | £ 8,445 |
Net Debt - Schedule of Current
Net Debt - Schedule of Current Assets, Short and Long Term Borrowings (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Current assets: | ||||
Liquid investments | £ 78 | £ 89 | ||
Cash and cash equivalents | 3,833 | 4,897 | £ 5,830 | |
Current assets | 15,907 | 16,711 | ||
Short-term borrowings: | ||||
Commercial paper | (529) | (1,094) | ||
Bank loans and overdrafts | (236) | (332) | ||
Short-term borrowings | (2,825) | (4,129) | ||
Long-term borrowings: | ||||
Long-term borrowings | (14,264) | (14,661) | ||
Net debt | (13,178) | (13,804) | £ (10,727) | £ (14,377) |
Short-term borrowings [member] | ||||
Short-term borrowings: | ||||
Obligations under finance leases | (23) | (23) | ||
Long Term Borrowings [Member] | ||||
Long-term borrowings: | ||||
Obligations under finance leases | (43) | (41) | ||
Other LongTerm Borrowings [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (49) | |||
New York Stock Exchange [Member] | 1.50% US Medium Term Note 2017 [Member] | ||||
Short-term borrowings: | ||||
Short-term borrowings | (1,612) | |||
New York Stock Exchange [Member] | 5.65% US Medium Term Note 2018 [Member] | ||||
Short-term borrowings: | ||||
Short-term borrowings | (2,037) | |||
Long-term borrowings: | ||||
Long-term borrowings | (2,216) | |||
New York Stock Exchange [Member] | 2.85% US Medium Term Note 2022 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (1,474) | (1,603) | ||
New York Stock Exchange [Member] | 2.8% US Medium Term Note 2023 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (919) | (999) | ||
New York Stock Exchange [Member] | 6.375% US Medium Term Note 2038 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (2,021) | (2,199) | ||
New York Stock Exchange [Member] | 4.2% US Medium Term Note 2043 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (363) | (395) | ||
London Stock Exchange [Member] | 5.625% European Medium Term Note 2017 [Member] | ||||
Short-term borrowings: | ||||
Short-term borrowings | (1,068) | |||
London Stock Exchange [Member] | 0.625% European Medium Term Notes 2019 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (1,324) | (1,276) | ||
London Stock Exchange [Member] | Zero Percent European Medium Term Notes Two Thousand twenty [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (1,060) | |||
London Stock Exchange [Member] | 1.375% European Medium Term Notes 2024 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (876) | (845) | ||
London Stock Exchange [Member] | 4.00% European Medium Term Note 2025 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (659) | (635) | ||
London Stock Exchange [Member] | One Percent European Medium Term Notes Two Thousand twenty six [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (617) | |||
London Stock Exchange [Member] | 3.375% European Medium Term Note 2027 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (593) | (593) | ||
London Stock Exchange [Member] | One point three seven five Percent European Medium Term Notes Two Thousand twenty nine [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (439) | |||
London Stock Exchange [Member] | 5.25% European Medium Term Note 2033 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (986) | (986) | ||
London Stock Exchange [Member] | 5.375% US Medium Term Note 2034 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (368) | (401) | ||
London Stock Exchange [Member] | 6.375% European Medium Term Note 2039 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (695) | (695) | ||
London Stock Exchange [Member] | 5.25% European Term Note 2042 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (989) | (988) | ||
London Stock Exchange [Member] | 4.25% European Medium Term Note 2045 [Member] | ||||
Long-term borrowings: | ||||
Long-term borrowings | (789) | (789) | ||
Net debt [member] | ||||
Current assets: | ||||
Liquid investments | 78 | 89 | ||
Cash and cash equivalents | 3,833 | 4,897 | ||
Current assets | £ 3,911 | £ 4,986 |
Net Debt - Additional Informati
Net Debt - Additional Information (Detail) | 12 Months Ended | |||||
Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2016GBP (£) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Disclosure of debt [Line Items] | ||||||
Effective Interest rate on liquid investment | 1.00% | 0.70% | 1.00% | 0.70% | ||
Effective Interest rate on cash and cash equivalents | 1.30% | 1.30% | 1.30% | 1.30% | ||
Commercial paper issued | £ 529,000,000 | £ 1,094,000,000 | ||||
Weighted average interest rate on current bank loans and overdrafts | 4.65% | 3.47% | 4.65% | 3.47% | ||
Average effective pre-swap interest rate notes as short | 5.92% | 5.92% | ||||
Long-term borrowings | £ 14,264,000,000 | £ 14,661,000,000 | ||||
Average effective pre-swap interest rate notes | 3.60% | 3.60% | 4.10% | 4.10% | ||
Other non current assets | £ 1,413,000,000 | £ 1,199,000,000 | ||||
US commercial paper program [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Commercial paper authorized | 7,400,000,000 | $ 10,000,000,000 | ||||
Commercial paper issued | £ 500,000,000 | 1,100,000,000 | 700,000,000 | $ 1,400,000,000 | ||
Bottom of range [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Repayment dates | 2,023 | 2,023 | ||||
Top of range [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Repayment dates | 2,045 | 2,045 | ||||
Floating interest rate [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Liquid investment | £ 78,000,000 | 89,000,000 | ||||
Interest income | 3,832,000,000 | 4,584,000,000 | ||||
Fixed interest rate [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Liquid investment | 0 | 0 | ||||
Interest income | £ 1,000,000 | £ 3,000,000 | ||||
Commercial paper [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Weighted average interest rate of borrowings | 1.53% | 1.53% | 0.88% | 0.88% | ||
Letter of credit 1 [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Pledged investments value | £ 78,000,000 | $ 105,000,000 | £ 85,000,000 | $ 105,000,000 | ||
Other non current assets | 20,000,000 | 23,000,000 | ||||
Five -year commitment facility [member] | US commercial paper program [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Credit Facility available amount | 1,900,000,000 | |||||
364 day committed facilities [member] | US commercial paper program [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Credit Facility available amount | 1,900,000,000 | $ 2,500,000,000 | ||||
Later than five years [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Long-term borrowings | £ 10,300,000,000 | £ 11,100,000,000 | ||||
Later than five years [member] | Bottom of range [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Interest at effective rates | 1.07% | 1.07% | ||||
Later than five years [member] | Top of range [member] | ||||||
Disclosure of debt [Line Items] | ||||||
Interest at effective rates | 6.66% | 6.66% |
Net Debt - Schedule of Finance
Net Debt - Schedule of Finance Lease Obligations (Detail) - GBP (£) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total future rental payments | £ 78 | £ 67 |
Future finance charges | (12) | (3) |
Total finance lease obligations | 66 | 64 |
Not later than one year [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total future rental payments | 25 | 25 |
Between one and two years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total future rental payments | 29 | 23 |
Between two and three years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total future rental payments | 9 | 12 |
Between Three and Four Years [Member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total future rental payments | 3 | £ 7 |
Between four and five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total future rental payments | 2 | |
Later than five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Total future rental payments | £ 10 |
Contingent Liabilities - Additi
Contingent Liabilities - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of contingent liabilities [abstract] | ||
Contingent liabilities, comprising guarantees, discounted bills and other items | £ 434 | £ 281 |
Financial assets were pledged as collateral for contingent liabilities | £ 2 | £ 1 |
Share Capital and Share Prem186
Share Capital and Share Premium Account - Summary of Share Capital and Share Premium (Detail) - GBP (£) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure Of Classes Of Share Capital And Share Premium [Line Items] | |||
Share capital issued and fully paid beginning balance | 5,368,316,062 | 5,361,307,647 | 5,355,297,232 |
Shares Authorised | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 |
Issued under employee share schemes | 4,237,758 | 7,008,415 | 6,010,415 |
Ordinary shares acquired by ESOP Trusts | 0 | 0 | |
Share capital issued and fully paid ending balance | 5,372,553,820 | 5,368,316,062 | 5,361,307,647 |
Equity at beginning of period | £ 4,963,000,000 | £ 8,878,000,000 | £ 4,936,000,000 |
Issued under employee share schemes | 56,000,000 | 89,000,000 | 73,000,000 |
Equity at end of period | 3,489,000,000 | 4,963,000,000 | 8,878,000,000 |
Share premium [member] | |||
Disclosure Of Classes Of Share Capital And Share Premium [Line Items] | |||
Equity at beginning of period | 2,954,000,000 | 2,831,000,000 | 2,759,000,000 |
Issued under employee share schemes | 55,000,000 | 87,000,000 | 72,000,000 |
Ordinary shares acquired by ESOP Trusts | 10,000,000 | 36,000,000 | |
Equity at end of period | 3,019,000,000 | 2,954,000,000 | 2,831,000,000 |
Share capital [member] | |||
Disclosure Of Classes Of Share Capital And Share Premium [Line Items] | |||
Equity at beginning of period | 1,342,000,000 | 1,340,000,000 | 1,339,000,000 |
Issued under employee share schemes | 1,000,000 | 2,000,000 | 1,000,000 |
Equity at end of period | 1,343,000,000 | 1,342,000,000 | 1,340,000,000 |
Share capital [member] | Ordinary shares [member] | |||
Disclosure Of Classes Of Share Capital And Share Premium [Line Items] | |||
Shares Authorised, value | 2,500,000,000 | 2,500,000,000 | 2,500,000,000 |
Equity at beginning of period | 1,342,000,000 | 1,340,000,000 | 1,339,000,000 |
Issued under employee share schemes | 1,000,000 | 2,000,000 | 1,000,000 |
Equity at end of period | £ 1,343,000,000 | £ 1,342,000,000 | £ 1,340,000,000 |
Share Capital and Share Prem187
Share Capital and Share Premium Account - Summary of Share Capital and Share Premium (Parenthetical) (Detail) | Dec. 31, 2017£ / shares |
Disclosure Of Classes Of Share Capital And Share Premium [Abstract] | |
Ordinary price per share | £ 0.25 |
Share Capital and Share Prem188
Share Capital and Share Premium Account - Summary of Share Capital (Detail) | 12 Months Ended | |
Dec. 31, 2017shares | Dec. 31, 2016shares | |
Disclosure Of Classes Of Share Capital And Share Premium [Abstract] | ||
Number of shares issuable under employee share schemes | 38,647 | 71,382 |
Number of unissued shares not under option | 4,588,799 | 4,560,302 |
Share Capital and Share Prem189
Share Capital and Share Premium Account - Additional Information (Detail) | Dec. 31, 2017shares |
Employee share ownership plan [member] | |
Disclosure Of Classes Of Share Capital And Share Premium [Line Items] | |
Share capital issued | 66,696,677 |
Treasury shares [member] | |
Disclosure Of Classes Of Share Capital And Share Premium [Line Items] | |
Share capital issued | 414,605,950 |
Free issue [member] | |
Disclosure Of Classes Of Share Capital And Share Premium [Line Items] | |
Share capital issued | 4,891,251,193 |
Movements in Equity - Additiona
Movements in Equity - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Retained earnings and other reserves | £ (4,430) | £ (3,172) | £ 943 | |
Other reserve | 2,047 | 2,220 | 2,340 | £ 2,239 |
Associates and joint ventures [member] | ||||
Retained earnings and other reserves | 334 | 329 | 283 | |
Merger and premerger reserves [member] | ||||
Other reserve | 1,849 | 1,849 | 1,849 | |
Capital redemption reserve [member] | ||||
Other reserve | £ 280 | £ 280 | £ 280 |
Movements in Equity - Summary o
Movements in Equity - Summary of Cumulative Translation Exchange in Equity (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Beginning balance | £ 389 | £ (860) | £ (250) |
Exchange movements on overseas net assets | 313 | 1,249 | (610) |
Reclassification of exchange on liquidation or disposal of overseas subsidiaries | 109 | ||
Ending balance | 811 | 389 | (860) |
Retained earnings [member] | |||
Beginning balance | (128) | (761) | (137) |
Exchange movements on overseas net assets | 462 | 633 | (624) |
Reclassification of exchange on liquidation or disposal of overseas subsidiaries | 109 | ||
Ending balance | 443 | (128) | (761) |
Fair value reserve [member] | |||
Beginning balance | 23 | 10 | 4 |
Exchange movements on overseas net assets | 13 | 6 | |
Ending balance | 23 | 23 | 10 |
Non- controlling interests [member] | |||
Beginning balance | 494 | (109) | (117) |
Exchange movements on overseas net assets | (149) | 603 | 8 |
Ending balance | £ 345 | £ 494 | £ (109) |
Movements in Equity - Analysis
Movements in Equity - Analysis of Other Comprehensive Income by Equity Category (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Items that may be subsequently reclassified to income statement: | |||
Exchange movements on overseas net assets and net investment hedges | £ 462 | £ 646 | £ (618) |
Reclassification of exchange on liquidation or disposal of overseas subsidiaries | 109 | ||
Fair value movements on available-for-sale investments | (14) | 251 | 416 |
Deferred tax on fair value movements on available-for-sale investments | 47 | (91) | |
Reclassification of fair value movements on available-for-sale investments | (42) | (245) | (346) |
Deferred tax reversed on reclassification of available for sale investments | (18) | 51 | 36 |
Reclassification of cash flow hedges to income statement | 1 | 2 | |
Fair value movements on cash flow hedges | (10) | 2 | 2 |
Share of other comprehensive expense of associates and joint ventures | (77) | ||
Deferred tax on fair value movements on cash flow hedges | 2 | ||
Items that will not be reclassified to income statement: | |||
Exchange movements on overseas net assets of non-controlling interests | (149) | 603 | 8 |
Remeasurement gains on defined benefit plans | 549 | (475) | 261 |
Tax on remeasurement gains in defined benefit plans | (221) | 126 | (80) |
Other comprehensive (expense)/income for the year | 713 | 962 | (487) |
Retained earnings [member] | |||
Items that may be subsequently reclassified to income statement: | |||
Exchange movements on overseas net assets and net investment hedges | 462 | 633 | (624) |
Reclassification of exchange on liquidation or disposal of overseas subsidiaries | 109 | ||
Share of other comprehensive expense of associates and joint ventures | (77) | ||
Items that will not be reclassified to income statement: | |||
Remeasurement gains on defined benefit plans | 549 | (475) | 261 |
Tax on remeasurement gains in defined benefit plans | (221) | 126 | (80) |
Other comprehensive (expense)/income for the year | 899 | 284 | (520) |
Other reserves [member] | |||
Items that may be subsequently reclassified to income statement: | |||
Exchange movements on overseas net assets and net investment hedges | 13 | 6 | |
Fair value movements on available-for-sale investments | (14) | 251 | 416 |
Deferred tax on fair value movements on available-for-sale investments | 47 | (91) | |
Reclassification of fair value movements on available-for-sale investments | (42) | (245) | (346) |
Deferred tax reversed on reclassification of available for sale investments | (18) | 51 | 36 |
Reclassification of cash flow hedges to income statement | 1 | 2 | |
Fair value movements on cash flow hedges | (10) | 2 | 2 |
Deferred tax on fair value movements on cash flow hedges | 2 | ||
Items that will not be reclassified to income statement: | |||
Other comprehensive (expense)/income for the year | (37) | 75 | 25 |
Non- controlling interests [member] | |||
Items that will not be reclassified to income statement: | |||
Exchange movements on overseas net assets of non-controlling interests | (149) | 603 | 8 |
Other comprehensive (expense)/income for the year | £ (149) | £ 603 | £ 8 |
Movements in Equity - Analys193
Movements in Equity - Analysis of Other Reserves (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other reserves, beginning balance | £ 2,220 | £ 2,340 | £ 2,239 |
Transferred to income and expense in the year on disposals | (20) | (284) | (354) |
Transferred to income and expense in the year on impairments | 23 | 10 | |
Net fair value movement in the year | (17) | 336 | 369 |
Ordinary shares acquired by ESOP Trusts | (656) | (576) | (99) |
Write-down of shares held by ESOP Trusts | 520 | 381 | 175 |
Other reserves, ending balance | 2,047 | 2,220 | 2,340 |
ESOP trust shares [member] | |||
Other reserves, beginning balance | (286) | (75) | (151) |
Transferred to income and expense in the year on disposals | 22 | (16) | |
Ordinary shares acquired by ESOP Trusts | (656) | (576) | (99) |
Write-down of shares held by ESOP Trusts | 520 | 381 | 175 |
Other reserves, ending balance | (400) | (286) | (75) |
Fair value reserve [member] | |||
Other reserves, beginning balance | 380 | 295 | 274 |
Transferred to income and expense in the year on disposals | (42) | (268) | (356) |
Transferred to income and expense in the year on impairments | 23 | 10 | |
Net fair value movement in the year | (9) | 330 | 367 |
Other reserves, ending balance | 329 | 380 | 295 |
Cash Flow Hedges Reserve [Member] | |||
Other reserves, beginning balance | (3) | (9) | (13) |
Transferred to income and expense in the year on disposals | 2 | ||
Net fair value movement in the year | (8) | 6 | 2 |
Other reserves, ending balance | (11) | (3) | (9) |
Other reserves [member] | |||
Other reserves, beginning balance | 2,129 | 2,129 | 2,129 |
Other reserves, ending balance | £ 2,129 | £ 2,129 | £ 2,129 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - GBP (£) shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Japan Vaccine Company Limited [member] | ||
Disclosure of transactions between related parties [line items] | ||
Sale of vaccine product | £ 41,000,000 | £ 43,000,000 |
Trading balance receivable | 11,000,000 | 9,000,000 |
Trading balance payable | 0 | 0 |
Loans outstanding | £ 7,000,000 | |
Innoviva incorporation [member] | ||
Disclosure of transactions between related parties [line items] | ||
Number of shares owned | 32 | |
Percentage of shares owned | 31.40% | |
Royalty charge | £ 173,000,000 | 108,000,000 |
Royalty payable | £ 53,000,000 | £ 36,000,000 |
Joint ventures where entity is venturer [member] | Japan Vaccine Company Limited [member] | ||
Disclosure of transactions between related parties [line items] | ||
Ownership interest | 50.00% | |
Medicxi Ventures I Limited Partner [member] | ||
Disclosure of transactions between related parties [line items] | ||
Loans outstanding | £ 7,000,000 | |
Index ventures life VI [member] | ||
Disclosure of transactions between related parties [line items] | ||
Loans outstanding | £ 8,000,000 |
Adjustments Reconciling Prof195
Adjustments Reconciling Profit After Tax to Operating Cash Flows - Summary of Cash Generated from Operations (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Adjustments to reconcile profit (loss) [abstract] | |||
Profit after tax | £ 2,169 | £ 1,062 | £ 8,372 |
Tax on profits | 1,356 | 877 | 2,154 |
Share of after tax profits of associates and joint ventures | (13) | (5) | (14) |
Finance expense net of finance income | 669 | 664 | 653 |
Depreciation | 988 | 978 | 892 |
Amortisation of intangible assets | 934 | 796 | 738 |
Impairment and assets written off | 1,061 | 226 | 822 |
Profit on sale of businesses | (157) | (5) | (9,308) |
Profit on sale of intangible assets | (46) | (178) | (349) |
Profit on sale of investments in associates | (94) | (843) | |
Profit on sale of equity investments | (37) | (254) | (342) |
Changes in working capital: | |||
(Increase)/decrease in inventories | (461) | 70 | (111) |
(Increase)/decrease in trade receivables | (287) | (188) | 98 |
Increase in trade payables | 11 | 96 | 40 |
Decrease/(increase) in other receivables | 74 | 381 | (593) |
Contingent consideration paid (see Note 39) | (594) | (358) | (121) |
Other non-cash increase in contingent consideration liabilities | 961 | 2,281 | 1,986 |
Increase in other payables | 1,741 | 1,989 | 276 |
(Decrease)/increase in pension and other provisions | (255) | (621) | 100 |
Share-based incentive plans | 333 | 319 | 368 |
Fair value adjustments | (3) | ||
Other | (95) | (21) | (187) |
Adjustments reconciling profit after tax to operating cash flows | 6,089 | 7,044 | (3,741) |
Cash generated from operations | £ 8,258 | £ 8,106 | £ 4,631 |
Reconciliation of Net Cash F196
Reconciliation of Net Cash Flow to Movement in Net Debt - Summary of Net Debt (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of net debt [Abstract] | |||
Net debt at beginning of year | £ (13,804) | £ (10,727) | £ (14,377) |
(Decrease)/increase in cash and bank overdrafts | (905) | (1,164) | 1,503 |
(Decrease)/increase in liquid investments | (4) | 2 | |
Net increase in long-term loans | (2,233) | ||
Net repayment of/(increase in) short-term loans | 3,200 | (148) | 2,412 |
Net repayment of obligations under finance leases | 23 | 18 | 25 |
Exchange adjustments | 585 | (1,781) | (268) |
Other non-cash movements | (40) | (2) | (24) |
Movement in net debt | 626 | (3,077) | 3,650 |
Net debt at end of year | £ (13,178) | £ (13,804) | £ (10,727) |
Reconciliation of Net Cash F197
Reconciliation of Net Cash Flow to Movement in Net Debt - Summary of Analysis of Changes in Net Debt (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of debt [Line Items] | |||
Beginning balance | £ (13,804) | ||
Exchange | 585 | £ (1,781) | £ (268) |
Other | (24) | ||
Profit and loss | (16) | ||
Disposals | (6) | ||
Cash flow | 87 | ||
Ending balance | (13,178) | (13,804) | |
Liquid Investments [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | 89 | ||
Exchange | (7) | ||
Cash flow | (4) | ||
Ending balance | 78 | 89 | |
Cash and cash equivalents [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | 4,897 | ||
Exchange | (106) | ||
Disposals | (6) | ||
Cash flow | (952) | ||
Ending balance | 3,833 | 4,897 | |
Overdrafts [Member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (292) | ||
Exchange | 6 | ||
Cash flow | 53 | ||
Ending balance | (233) | (292) | |
Cash and cash equivalents and overdrafts [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | 4,605 | ||
Exchange | (100) | ||
Disposals | (6) | ||
Cash flow | (899) | ||
Ending balance | 3,600 | 4,605 | |
Commercial paper [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (1,094) | ||
Exchange | 37 | ||
Cash flow | 528 | ||
Ending balance | (529) | (1,094) | |
European and US Medium Term Notes [Member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (2,680) | ||
Exchange | 121 | ||
Reclassification | (2,114) | ||
Cash flow | 2,636 | ||
Ending balance | (2,037) | (2,680) | |
Other [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (63) | ||
Exchange | 2 | ||
Other | (5) | ||
Reclassification | (19) | ||
Cash flow | 59 | ||
Ending balance | (26) | (63) | |
Short term debt [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (3,837) | ||
Exchange | 160 | ||
Other | (5) | ||
Reclassification | (2,133) | ||
Cash flow | 3,223 | ||
Ending balance | (2,592) | (3,837) | |
European and US medium term notes non-current [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (14,620) | ||
Exchange | 530 | ||
Other | 4 | ||
Profit and loss | (16) | ||
Reclassification | 2,114 | ||
Cash flow | (2,233) | ||
Ending balance | (14,221) | (14,620) | |
Other non-current debt [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (41) | ||
Exchange | 2 | ||
Other | (23) | ||
Reclassification | 19 | ||
Ending balance | (43) | (41) | |
Long term debt [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (14,661) | ||
Exchange | 532 | ||
Other | (19) | ||
Profit and loss | (16) | ||
Reclassification | 2,133 | ||
Cash flow | (2,233) | ||
Ending balance | (14,264) | £ (14,661) | |
Long Term Debt Due With In One Year [Member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (3,837) | ||
Exchange | 160 | ||
Other | (5) | ||
Reclassification | (2,133) | ||
Disposals | 0 | ||
Cash flow | 3,223 | ||
Ending balance | (2,592) | ||
Long Term Debt Due after 2018 [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (14,661) | ||
Exchange | 532 | ||
Other | (19) | ||
Profit and loss | (16) | ||
Reclassification | 2,133 | ||
Disposals | 0 | ||
Cash flow | (2,233) | ||
Ending balance | (14,264) | ||
Derivative financial instruments [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (38) | ||
Other | 37 | ||
Profit and loss | 5 | ||
Disposals | 0 | ||
Cash flow | (2) | ||
Ending balance | 2 | ||
Other financing items [member] | |||
Disclosure of debt [Line Items] | |||
Exchange | 91 | ||
Disposals | 0 | ||
Cash flow | (91) | ||
Accrued interest [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (158) | ||
Exchange | 4 | ||
Other | 1 | ||
Profit and loss | (731) | ||
Reclassification | (100) | ||
Disposals | 0 | ||
Cash flow | 781 | ||
Ending balance | (203) | ||
Liabilities arising from financing activities [member] | |||
Disclosure of debt [Line Items] | |||
Beginning balance | (18,694) | ||
Exchange | 787 | ||
Other | 14 | ||
Profit and loss | (742) | ||
Reclassification | (100) | ||
Disposals | 0 | ||
Cash flow | 1,678 | ||
Ending balance | £ (17,057) |
Acquisitions and disposals - 20
Acquisitions and disposals - 2016 Acquisitions - Additional Information (Detail) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017GBP (£)AcquisitionsAcquisition | Dec. 31, 2016GBP (£) | Dec. 31, 2015GBP (£) | |
Disclosure of detailed information about business combination [line items] | |||
Cash investment in associates and joint ventures | £ 15 | ||
Goodwill | 5,734 | £ 5,965 | £ 5,162 |
Cash investment in associates and joint ventures | 183 | 263 | £ 207 |
2017 disposals [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | 342 | ||
Deferred consideration receivable | 86 | ||
Cash consideration paid | 198 | ||
Associates [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration paid | £ 198 | ||
Number of investment holdings sold | 2 | ||
2017 acquisition [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Number of acquisitions | Acquisition | 0 | ||
2016 acquisitions [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Number of acquisitions | Acquisitions | 2 | ||
2016 acquisitions [member] | 2016 business disposals [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | £ 72 | ||
Deferred consideration receivable | £ 43 | ||
HIV R&D preclinical and discovery stage portfolio [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | 24 | ||
Initial estimate of recognised for contingent consideration | 40 | ||
Intangible assets | 57 | ||
Goodwill | 7 | ||
Galvani Bioelectronics Limited [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Intangible assets | 45 | ||
Cash and cash equivalents | £ 41 | ||
Proportion of non-controlling interest | 45.00% | ||
Fair value of shareholdings | £ 47 | ||
Non controlling interest | £ 39 |
Acquisitions and Disposals - Su
Acquisitions and Disposals - Summary of Profit on Disposal of Businesses (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
Net assets sold: | ||
Reclassification of exchange from other comprehensive income | £ 109 | |
2017 disposals [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash consideration including currency forwards and purchase adjustments | 342 | |
Net assets sold: | ||
Goodwill | (16) | |
Intangible assets | (21) | |
Property, plant and equipment | (18) | |
Inventory | (11) | |
Cash | (6) | |
Other net assets | (5) | |
Net assets sold | (77) | |
Transaction costs | (8) | |
Reclassification of exchange from other comprehensive income | (100) | |
Profit on disposal | £ 157 | |
Oncology [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash consideration including currency forwards and purchase adjustments | £ (10,060) | |
Net assets sold: | ||
Goodwill | (497) | |
Intangible assets | (516) | |
Net assets sold | (1,013) | |
Loss on currency forwards booked in 2014 | 299 | |
Disposal costs | (118) | |
Profit on disposal | 9,228 | |
Other business disposal [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash consideration including currency forwards and purchase adjustments | (309) | |
Net assets sold: | ||
Goodwill | (14) | |
Intangible assets | (107) | |
Property, plant and equipment | (25) | |
Inventory | (51) | |
Cash | (5) | |
Other net assets | (6) | |
Net assets sold | (208) | |
Disposal costs | (21) | |
Profit on disposal | £ 80 |
Acquisitions and Disposals -200
Acquisitions and Disposals - Summary of Disposal of Associates (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2015 | |
2017 disposals [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash consideration | £ 198 | |
Investment associates and joint ventures [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash consideration | £ 571 | |
Net book value of shares | 143 | |
Reclassification of exchange from other comprehensive income | 30 | |
Transaction costs | 7 | |
Profit on disposal | £ 386 | |
Investment associates and joint ventures [member] | 2017 disposals [member] | ||
Disclosure of detailed information about business combination [line items] | ||
Cash consideration | 198 | |
Net book value of shares | (92) | |
Reclassification of exchange from other comprehensive income | (7) | |
Transaction costs | (5) | |
Profit on disposal | £ 94 |
Acquisitions and Disposals -201
Acquisitions and Disposals - Summary of Investment in Associates and Joint Ventures (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of detailed information about business combination [line items] | |||
Contingent consideration paid | £ 91 | £ 73 | £ 338 |
Cash (outflow)/inflow | (1,443) | £ (1,269) | 6,037 |
Cash flows in 2015 [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | 7,355 | ||
Cash and cash equivalents acquired/(divested) | 399 | ||
Deferred cash proceeds | (38) | ||
Contingent consideration paid | (338) | ||
Transaction costs and other | (109) | ||
Cash (outflow)/inflow | 7,269 | ||
2017 disposals [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | 198 | ||
Transaction costs and other | (2) | ||
Cash (outflow)/inflow | 196 | ||
Investment associates and joint ventures [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | 571 | ||
Net book value of shares | (143) | ||
Reclassification of exchange from other comprehensive income | (30) | ||
Transaction fees | (7) | ||
Other items | (5) | ||
Profit on disposal | 386 | ||
Investment associates and joint ventures [member] | 2017 disposals [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | 198 | ||
Net book value of shares | 92 | ||
Reclassification of exchange from other comprehensive income | 7 | ||
Transaction fees | 5 | ||
Profit on disposal | 94 | ||
Business combinations [member] | Cash flows in 2015 [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | (3,585) | ||
Cash and cash equivalents acquired/(divested) | 404 | ||
Contingent consideration paid | (338) | ||
Transaction costs and other | (22) | ||
Cash (outflow)/inflow | (3,541) | ||
Business combinations [member] | 2017 disposals [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | 256 | ||
Cash and cash equivalents acquired/(divested) | (6) | ||
Contingent consideration paid | 39 | ||
Transaction costs and other | (7) | ||
Cash (outflow)/inflow | 282 | ||
Business disposals [member] | Cash flows in 2015 [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | 10,369 | ||
Cash and cash equivalents acquired/(divested) | (5) | ||
Deferred cash proceeds | (38) | ||
Transaction costs and other | (80) | ||
Cash (outflow)/inflow | 10,246 | ||
Associates and JV disposal [member] | Cash flows in 2015 [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | 571 | ||
Transaction costs and other | (7) | ||
Cash (outflow)/inflow | £ 564 | ||
Associates and JV disposal [member] | 2017 disposals [member] | |||
Disclosure of detailed information about business combination [line items] | |||
Cash consideration | (15) | ||
Cash (outflow)/inflow | £ (15) |
Acquisitions and Disposals -202
Acquisitions and Disposals - Summary of Cash Flows from Business Combinations (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2016GBP (£) | |
Business acquisitions [member] | |
Disclosure of detailed information about business combination [line items] | |
Cash consideration (paid)/received after purchase adjustments | £ (24) |
Cash and cash equivalents acquired | 41 |
Cash inflow | 17 |
Business disposals [member] | |
Disclosure of detailed information about business combination [line items] | |
Cash consideration (paid)/received after purchase adjustments | 72 |
Cash inflow | £ 72 |
Acquisitions and disposals -203
Acquisitions and disposals - 2015 Acquisitions - Additional Information (Detail) £ in Millions, $ in Millions | 1 Months Ended | 10 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015GBP (£) | Dec. 31, 2015GBP (£) | Dec. 31, 2017GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2015GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2016GBP (£) | |
Disclosure of detailed information about business combination [line items] | |||||||
Goodwill | £ 5,162 | £ 5,734 | £ 5,162 | £ 5,965 | |||
Cash investment in associates and joint ventures | 207 | 183 | 207 | £ 263 | |||
Other business disposal [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash consideration, net | 309 | ||||||
Oncology product [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Oncology business cash consideration | £ 10,395 | $ 16,000 | |||||
Novartis consumer healthcare and vaccines businesses [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Business acquisition date | Mar. 2, 2015 | Mar. 2, 2015 | |||||
Novartis global vaccines business [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash consideration | £ 3,417 | $ 5,250 | |||||
Milestone Payments | 1,200 | $ 1,800 | |||||
First milestone payments | £ 300 | $ 450 | |||||
Equity ownership percentage and majority control of joint venture | 63.50% | 63.50% | |||||
Vaccines business acquisition [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash consideration | £ 120 | ||||||
Fair value of existing investment | 15 | ||||||
Goodwill | 22 | ||||||
Intangible assets | 124 | ||||||
Other net liabilities | 11 | ||||||
Novartis consumer health care [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Transaction costs for acquisition recognized in 2014 and 2015 | £ 102 | ||||||
Novartis consumer health care and vaccines business [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Group turnover since date of business acquisition | 1,941 | ||||||
Estimated group turn over additional amount of after acquisition | £ 320 | ||||||
Investment associates and joint ventures [member] | |||||||
Disclosure of detailed information about business combination [line items] | |||||||
Cash investment in associates and joint ventures | £ 16 | ||||||
Issued share capital percentage | 6.20% | ||||||
issued share capital, cash | £ 571 |
Acquisitions and Disposals -204
Acquisitions and Disposals - Summary of Fair Values of the Assets Acquired in Business Combinations, Including Goodwill (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net assets acquired: | |||
Goodwill | £ 5,162 | £ 5,734 | £ 5,965 |
Novartis consumer health care business[member] | |||
Net assets acquired: | |||
Intangible assets | 6,003 | ||
Property, plant and equipment | 249 | ||
Inventory | 257 | ||
Trade and other receivables | 400 | ||
Other assets including cash and cash equivalents | 304 | ||
Trade and other payables | (402) | ||
Deferred tax liabilities | (1,154) | ||
Other liabilities | (165) | ||
Assets liabilities excluding goodwill | 5,492 | ||
Non-controllinginterest | (2,150) | ||
Goodwill | 774 | ||
Net assets liabilities including goodwill | 4,116 | ||
Novartis consumer health care business[member] | GSK consumer health care holdings [member] | |||
Net assets acquired: | |||
Consideration settled by shares in GSK Consumer Healthcare Holdings | 4,116 | ||
Total consideration | 4,116 | ||
Novartis vaccines business [member] | |||
Net assets acquired: | |||
Intangible assets | 2,680 | ||
Property, plant and equipment | 434 | ||
Inventory | 347 | ||
Trade and other receivables | 162 | ||
Other assets including cash and cash equivalents | 283 | ||
Trade and other payables | (107) | ||
Deferred tax liabilities | (78) | ||
Other liabilities | (299) | ||
Assets liabilities excluding goodwill | 3,422 | ||
Non-controllinginterest | (19) | ||
Goodwill | 576 | ||
Net assets liabilities including goodwill | 3,979 | ||
Novartis vaccines business [member] | GSK consumer health care holdings [member] | |||
Net assets acquired: | |||
Cash consideration paid after purchase adjustments | 3,461 | ||
Contingent consideration | 594 | ||
Deferred tax on contingent consideration | (52) | ||
Loss on settlement of pre-existing relationships | (24) | ||
Total consideration | 3,979 | ||
Other [member] | |||
Net assets acquired: | |||
Intangible assets | 124 | ||
Property, plant and equipment | 1 | ||
Trade and other receivables | 2 | ||
Other assets including cash and cash equivalents | 19 | ||
Trade and other payables | (3) | ||
Deferred tax liabilities | (26) | ||
Assets liabilities excluding goodwill | 117 | ||
Goodwill | 22 | ||
Net assets liabilities including goodwill | 139 | ||
Other [member] | GSK consumer health care holdings [member] | |||
Net assets acquired: | |||
Cash consideration paid after purchase adjustments | 124 | ||
Fair value of equity investment disposal | 15 | ||
Total consideration | £ 139 |
Contingent consideration lia205
Contingent consideration liabilities - Summary of Fair Value Contingent Consideration (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of fair value of contingent consideration [Line Items] | |||
At 1 January 2015 | £ 5,896 | £ 3,855 | £ 1,724 |
Additions through business combinations | 194 | 594 | |
Remeasurement through income statement | 961 | 2,281 | 1,986 |
Cash payments: operating cash flows | (594) | (358) | (121) |
Cash payments: investing activities | (91) | (73) | (338) |
Other movements | (3) | 10 | |
At 31 December 2015 | 6,172 | 5,896 | 3,855 |
Shionogi ViiV healthcare joint venture [member] | |||
Disclosure of fair value of contingent consideration [Line Items] | |||
At 1 January 2015 | 5,304 | 3,409 | 1,684 |
Additions through business combinations | 154 | ||
Remeasurement through income statement | 909 | 2,162 | 1,874 |
Cash payments: operating cash flows | (587) | (351) | (121) |
Cash payments: investing activities | (84) | (66) | (38) |
Other movements | (4) | 10 | |
At 31 December 2015 | 5,542 | 5,304 | 3,409 |
Novartis [member] | |||
Disclosure of fair value of contingent consideration [Line Items] | |||
At 1 January 2015 | 545 | 405 | |
Additions through business combinations | 594 | ||
Remeasurement through income statement | 53 | 152 | 111 |
Cash payments: operating cash flows | (7) | (5) | |
Cash payments: investing activities | (7) | (7) | (300) |
At 31 December 2015 | 584 | 545 | 405 |
Other [member] | |||
Disclosure of fair value of contingent consideration [Line Items] | |||
At 1 January 2015 | 47 | 41 | 40 |
Additions through business combinations | 40 | ||
Remeasurement through income statement | (1) | (33) | 1 |
Cash payments: operating cash flows | (2) | ||
Other movements | 1 | ||
At 31 December 2015 | £ 46 | £ 47 | £ 41 |
Contingent Consideration Lia206
Contingent Consideration Liabilities - Additional Information (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of fair value of contingent consideration [Line Items] | ||
Contingent consideration payable | £ 1,076 | £ 561 |
Shionogi ViiV healthcare joint venture [member] | ||
Disclosure of fair value of contingent consideration [Line Items] | ||
Contingent consideration liability discount percentage | 8.50% | |
Novartis [member] | Bottom of range [member] | ||
Disclosure of fair value of contingent consideration [Line Items] | ||
Contingent consideration liability discount percentage | 8.00% | |
Novartis [member] | Top of range [member] | ||
Disclosure of fair value of contingent consideration [Line Items] | ||
Contingent consideration liability discount percentage | 9.00% |
Contingent consideration lia207
Contingent consideration liabilities - Summary of Possible Changes in key Inputs to Valuation of Contingent Consideration Liabilities (Detail) £ in Millions | 12 Months Ended |
Dec. 31, 2017GBP (£) | |
Shionogi ViiV healthcare joint venture [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
10% increase in sales forecasts | £ 535 |
10% decrease in sales forecasts | (535) |
1% increase in discount rate | (228) |
1% decrease in discount rate | 245 |
Shionogi ViiV healthcare joint venture [member] | 10 cent appreciation of the US Dollar [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
10 cent appreciation of US Dollar | 329 |
Shionogi ViiV healthcare joint venture [member] | 10 cent depreciation of US Dollar [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
10 cent depreciation of US Dollar | (284) |
Shionogi ViiV healthcare joint venture [member] | 10 cent appreciation of the Euro [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
10 cent appreciation of Euro | 95 |
Shionogi ViiV healthcare joint venture [member] | 10 cent depreciation of Euro [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
10 cent depreciation of Euro | (80) |
Novartis vaccines [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
10% increase in sales forecasts | 56 |
10% decrease in sales forecasts | (55) |
1% increase in discount rate | (18) |
1% decrease in discount rate | 20 |
5% increase in probability of milestone success | 6 |
5% decrease in probability of milestone success | (6) |
Novartis vaccines [member] | 10 cent appreciation of the US Dollar [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
10 cent appreciation of US Dollar | 17 |
Novartis vaccines [member] | 10 cent depreciation of US Dollar [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
10 cent depreciation of US Dollar | (15) |
Novartis vaccines [member] | 10 cent appreciation of the Euro [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
10 cent appreciation of Euro | 25 |
Novartis vaccines [member] | 10 cent depreciation of Euro [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
10 cent depreciation of Euro | £ (21) |
Contingent consideration lia208
Contingent consideration liabilities - Summary of Possible Changes in key Inputs to Valuation of Contingent Consideration Liabilities (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Shionogi ViiV healthcare joint venture [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
Increase in sales forecasts | 10.00% |
Decrease in sales forecasts | 10.00% |
increase in discount rate | 1.00% |
Decrease in discount rate | 1.00% |
Novartis vaccines [member] | |
Disclosure of valuation techniques and key model inputs used to measure contingent consideration [Line Items] | |
Increase in sales forecasts | 10.00% |
Decrease in sales forecasts | 10.00% |
increase in discount rate | 1.00% |
Decrease in discount rate | 1.00% |
Increase in probability of milestone success | 5.00% |
Decrease in probability of milestone success | 5.00% |
Non-controlling interests - Sum
Non-controlling interests - Summarised Financial Information of ViiV Healthcare Group and GSK Consumer Healthcare Joint Venture (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of noncontrolling interests [Line Items] | |||
Total comprehensive expense for the year attributable to non-controllinginterests | £ 2,882 | £ 2,024 | £ 7,885 |
Non-controlling interests in the Consolidated balance sheet | 3,557 | 3,839 | |
Turnover | 30,186 | 27,889 | 23,923 |
Profit/(loss) after taxation | 637 | 150 | (50) |
Other comprehensive income | 713 | 962 | (487) |
Total comprehensive income | 488 | 753 | (42) |
Non-current assets | 40,474 | 42,370 | |
Current assets | 15,907 | 16,711 | |
Total assets | 56,381 | 59,081 | |
Current liabilities | (26,569) | (19,001) | |
Non-current liabilities | (26,323) | (35,117) | |
Total liabilities | (52,892) | (54,118) | |
Net assets | 3,489 | 4,963 | |
Net cash inflow from operating activities | 6,918 | 6,497 | 2,569 |
Net cash inflow/(outflow) from investing activities | (1,443) | (1,269) | 6,037 |
Net cash outflow from financing activities | (6,380) | (6,392) | (7,103) |
ViiV healthcare [member] | |||
Disclosure of noncontrolling interests [Line Items] | |||
Total comprehensive expense for the year attributable to non-controllinginterests | 187 | (83) | (143) |
Dividends paid to non-controlling interests | 316 | 152 | 163 |
Non-controlling interests in the Consolidated balance sheet | (476) | (353) | |
Turnover | 4,269 | 3,527 | 2,330 |
Profit/(loss) after taxation | 825 | (1,249) | (1,426) |
Other comprehensive income | 20 | 36 | 7 |
Total comprehensive income | 845 | (1,213) | (1,419) |
Non-current assets | 2,736 | 3,064 | |
Current assets | 2,533 | 2,357 | |
Total assets | 5,269 | 5,421 | |
Current liabilities | (2,409) | (1,977) | |
Non-current liabilities | (8,011) | (7,983) | |
Total liabilities | (10,420) | (9,960) | |
Net assets | (5,151) | (4,539) | |
Net cash inflow from operating activities | 2,132 | 1,750 | 1,097 |
Net cash inflow/(outflow) from investing activities | (207) | (326) | (63) |
Net cash outflow from financing activities | (1,820) | (1,023) | (814) |
Decrease in cash and bank overdrafts in the year | 105 | 401 | 220 |
Consumer health care joint venture [member] | |||
Disclosure of noncontrolling interests [Line Items] | |||
Total comprehensive expense for the year attributable to non-controllinginterests | 296 | 730 | 14 |
Dividends paid to non-controlling interests | 420 | 346 | |
Non-controlling interests in the Consolidated balance sheet | 3,631 | 3,755 | |
Turnover | 7,003 | 6,530 | 4,627 |
Profit/(loss) after taxation | 1,211 | 660 | (39) |
Other comprehensive income | (387) | 1,640 | 72 |
Total comprehensive income | 824 | 2,300 | 33 |
Non-current assets | 12,771 | 13,315 | |
Current assets | 3,282 | 3,996 | |
Total assets | 16,053 | 17,311 | |
Current liabilities | (2,675) | (3,060) | |
Non-current liabilities | (1,537) | (2,062) | |
Total liabilities | (4,212) | (5,122) | |
Net assets | 11,841 | 12,189 | |
Net cash inflow from operating activities | 883 | 1,496 | 277 |
Net cash inflow/(outflow) from investing activities | 270 | (537) | (691) |
Net cash outflow from financing activities | (1,194) | (980) | (42) |
Decrease in cash and bank overdrafts in the year | £ (41) | £ (21) | £ (456) |
Non-controlling interests - Add
Non-controlling interests - Additional Information (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of noncontrolling interests [Line Items] | |||
Profit after taxation | £ 637 | £ 150 | £ (50) |
ViiV healthcare [member] | |||
Disclosure of noncontrolling interests [Line Items] | |||
Profit after taxation | 825 | (1,249) | (1,426) |
Shionogi ViiV healthcare joint venture [member] | |||
Disclosure of noncontrolling interests [Line Items] | |||
Remeasurement of contingent consideration payable for acquisition | £ 909 | £ 2,186 | £ 1,874 |
Non-controlling interests - Sch
Non-controlling interests - Schedule of Amount Attributable to VIIV Healthcare Group Included in GSK's Consolidated Statement of Comprehensive Income, Consolidated Statement of Changes in Equity and Consolidated Balance Sheet (Detail) - GBP (£) £ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of noncontrolling interests [Line Items] | |||
Total comprehensive income for the year attributable to non-controllinginterests | £ 2,882 | £ 2,024 | £ 7,885 |
Non-controlling interests in the Consolidated balance sheet | 3,557 | 3,839 | |
Consumer health care joint venture [member] | |||
Disclosure of noncontrolling interests [Line Items] | |||
Total comprehensive income for the year attributable to non-controllinginterests | 296 | 730 | £ 14 |
Dividends paid to non-controlling interests | 420 | 346 | |
Non-controlling interests in the Consolidated balance sheet | £ 3,631 | £ 3,755 |
Commitments - Schedule of Contr
Commitments - Schedule of Contractual Obligations and Commitments (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Contractual Obligations And Commitments [Abstract] | ||
Intangible assets | £ 5,254 | £ 7,199 |
Property, plant and equipment | 584 | 496 |
Investments | 107 | 166 |
Purchase commitments | 346 | 52 |
Pensions | 738 | 874 |
Other commitments | 38 | 143 |
Interest on loans | 8,510 | 9,410 |
Finance lease charges | 12 | 3 |
Total contractual obligations and commitments | £ 15,589 | £ 18,343 |
Commitments - Additional Inform
Commitments - Additional Information (Detail) - GBP (£) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of Commitments [Abstract] | ||
Payment due, 2018 | £ 123,000,000 | |
Payment due, 2019 | 123,000,000 | |
Payment due, 2020 | 123,000,000 | |
Payment due, 2021 | 123,000,000 | |
Payment due, 2022 | 123,000,000 | |
Payment due, 2023 | 123,000,000 | |
Ongoing annual funding requirement | 130,000,000 | |
Commitments under non-cancellable operating leases | £ 117,000,000 | £ 186,000,000 |
Commitments - Summary of Commit
Commitments - Summary of Commitments Under Non-Cancellable Operating Leases (Detail) - GBP (£) | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of operating lease by lessee [Line Items] | ||
Total commitments under non-cancellable operating leases | £ 1,045,000,000 | £ 840,000,000 |
Not later than one year [member] | ||
Disclosure of operating lease by lessee [Line Items] | ||
Total commitments under non-cancellable operating leases | 186,000,000 | 153,000,000 |
Between one and two years [member] | ||
Disclosure of operating lease by lessee [Line Items] | ||
Total commitments under non-cancellable operating leases | 149,000,000 | 129,000,000 |
Between two and three years [member] | ||
Disclosure of operating lease by lessee [Line Items] | ||
Total commitments under non-cancellable operating leases | 122,000,000 | 94,000,000 |
Between Three and Four Years [Member] | ||
Disclosure of operating lease by lessee [Line Items] | ||
Total commitments under non-cancellable operating leases | 107,000,000 | 74,000,000 |
Between four and five years [member] | ||
Disclosure of operating lease by lessee [Line Items] | ||
Total commitments under non-cancellable operating leases | 94,000,000 | 66,000,000 |
Later than five years [member] | ||
Disclosure of operating lease by lessee [Line Items] | ||
Total commitments under non-cancellable operating leases | £ 387,000,000 | £ 324,000,000 |
Financial instruments and re215
Financial instruments and related disclosures - Additional Information (Detail) shares in Millions, $ in Billions | 12 Months Ended | ||||||
Dec. 31, 2017GBP (£)shares | Dec. 12, 2017GBP (£) | Dec. 31, 2016GBP (£)shares | Dec. 31, 2015GBP (£) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2014GBP (£) | |
Disclosure of detailed information about financial instruments [line items] | |||||||
Amount of borrowings repayable within one year | £ 13,178,000,000 | £ 13,804,000,000 | £ 10,727,000,000 | £ 14,377,000,000 | |||
Non-controlling interests | 3,557,000,000 | 3,839,000,000 | |||||
Total capital | 16,700,000,000 | ||||||
Short-term finance through issuance of commercial paper | 529,000,000 | 1,094,000,000 | |||||
Maximum exposure to credit risk | 9,988,000,000 | £ 11,002,000,000 | |||||
Bank balances and deposits held with counter parties | shares | 2,583 | ||||||
Group trade receivables due from three largest US wholesalers | 4,672,000,000 | £ 4,615,000,000 | |||||
Carrying value of shares held by trust under employee share ownership plan | 400,000,000 | 286,000,000 | |||||
Fair value of shares held by trust under employee share ownership plan | 882,000,000 | 667,000,000 | |||||
Treasury shares at cost | 5,800,000,000 | 6,451,000,000 | |||||
Remeasurement through income statement | (961,000,000) | (2,281,000,000) | (1,986,000,000) | ||||
Net gains recognised in other comprehensive income | 22,000,000 | 29,000,000 | |||||
Contingent consideration liabilities | 6,172,000,000 | 5,896,000,000 | £ 3,855,000,000 | £ 1,724,000,000 | |||
Derivative assets | 156,000,000 | ||||||
Increase in anticipated contractual cash flows for repayment of debt and debt interest | £ 2,600,000,000 | ||||||
Bonds In A Designated Hedging Relationship [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Borrowings excluding obligations under finance leases | 4,315,000,000 | 3,189,000,000 | |||||
Foreign Exchange Contracts [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Net asset fair value classified as held for trading under IAS 39 | 15,000,000 | 34,000,000 | |||||
Asset classified as held for trading under IAS 39 | 62,000,000 | 133,000,000 | |||||
Liability classified as held for trading under IAS 39 | 47,000,000 | 99,000,000 | |||||
Shionogi ViiV healthcare joint venture [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Remeasurement through income statement | 909,000,000 | 2,162,000,000 | |||||
Novartis [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Remeasurement through income statement | 53,000,000 | 152,000,000 | |||||
Level 3 [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Net losses recognised in the income statement | 970,000,000 | 2,283,000,000 | |||||
Level 3 [member] | Equity investments [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Net gains (losses) on equity investments held | (6,000,000) | 21,000,000 | |||||
Level 3 [member] | Shionogi ViiV healthcare joint venture [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Contingent consideration liabilities | 5,542,000,000 | 5,304,000,000 | |||||
Level 3 [member] | Novartis [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Contingent consideration liabilities | 584,000,000 | 545,000,000 | |||||
Not later than one year [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Derivative assets | 68,000,000 | 156,000,000 | |||||
Increase in contractual cash flows for non-derivative financial liabilities | 8,400,000,000 | ||||||
Between one and two years [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Decrease in contractual cash flows for non-derivative financial liabilities | 8,900,000,000 | ||||||
Credit risk [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Amount of cash held at unrated counter parties | 45,000,000 | ||||||
Cash in transit | £ 32,000,000 | ||||||
Bank balances and deposits held with counter parties | shares | 1,715 | ||||||
Cash held by subsidiary | £ 1,700,000,000 | ||||||
Derivative assets | £ 68,000,000 | ||||||
Credit risk [member] | Non USA [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Number of major customers accounting for more than 5% of trade receivables | 0 | ||||||
Credit risk [member] | Nigeria [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Concentration of credit risk | £ 7,000,000 | ||||||
Credit risk [member] | Austria [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Concentration of credit risk | 2,000,000 | ||||||
Credit risk [member] | HDFC bank [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Balances or deposits with banks | 17,000,000 | ||||||
Credit risk [member] | State Bank of India [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Balances or deposits with banks | 10,000,000 | ||||||
Credit risk [member] | Not later than three months [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Cash reserves | 2,500,000,000 | ||||||
Liquidity risk [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Cash and cash equivalents and liquid investments | 3,900,000,000 | ||||||
Cash and cash equivalents and liquid investments held centrally | 2,500,000,000 | ||||||
Short-term finance through issuance of commercial paper | £ 500,000,000 | $ 0.7 | $ 1.4 | ||||
Description of contractual committed facilities | The five-year committed facilities were agreed in September 2015 and were extended by one year to 2021 in September 2016. The 364 day committed facilities were agreed in August 2017. These facilities were undrawn at 31 December 2017. GSK considers this level of committed facilities to be adequate, given current liquidity requirements. | ||||||
Amount held at European medium term note programme | £ 15,000,000,000 | ||||||
Notes issued at European medium term note programme | 9,000,000,000 | ||||||
Notes issued under us shelf registration | £ 7,200,000,000 | 9.7 | |||||
Description of maturity date of borrowings | GSK's borrowings mature at dates between 2018 and 2045. | ||||||
Liquidity risk [member] | Not later than one year [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Amount of borrowings repayable within one year | £ 2,800,000,000 | ||||||
Committed facilities during the period | 1,900,000,000 | 2.5 | |||||
Liquidity risk [member] | Later than one year and not later than five years [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Committed facilities during the period | 1,900,000,000 | ||||||
1% (100 basis points) increase in sterling interest rates [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Impact on income through interest rate movements | 24,000,000 | 3,000,000 | |||||
External credit grades [member] | Credit risk [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Concentration of credit risk | £ 500,000,000 | £ 900,000,000 | |||||
BBB/Baa [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Bank balances and deposits held with counter parties | shares | 388 | ||||||
BBB/Baa [member] | Credit risk [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Bank balances and deposits held with counter parties | shares | 80 | ||||||
BBB -/ Baa3 Rated [member] | Credit risk [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Bank balances and deposits held with counter parties | shares | 27 | ||||||
Floating interest rate [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Percentage of increase in interest rate | 1.00% | ||||||
Floating interest rate [member] | 1% (100 basis points) increase in sterling interest rates [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Impact on income through interest rate movements | £ 5,000,000 | £ 3,000,000 | |||||
Top of range [member] | Credit risk [member] | Non USA [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Maximum percentage of trade receivables balance held by major customer account | 5.00% | ||||||
Pharmaceuticals and Vaccines [member] | Credit risk [member] | USA [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Percentage of sales to three largest wholesalers | 83.00% | ||||||
Group trade receivables due from three largest US wholesalers | £ 1,265,000,000 | £ 1,323,000,000 | |||||
US commercial paper program [member] | Liquidity risk [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Short-term finance at commercial paper programme | £ 7,400,000,000 | $ 10 | |||||
ViiV healthcare [member] | Credit risk [member] | |||||||
Disclosure of detailed information about financial instruments [line items] | |||||||
Percentage of ownership interest in subsidiary | 78.30% |
Financial Instruments and Re216
Financial Instruments and Related Disclosures - Summary of External Credit Exposure (Detail) - GBP (£) £ in Millions, shares in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of external credit grades [line items] | ||
Bank balances and deposits | 2,583 | |
US Treasury and Treasury repo only money market funds | £ 2,248 | |
Liquidity funds | 66 | |
Government securities | 89 | |
3rd party financial derivatives | 156 | |
Total | 5,142 | |
Credit risk [member] | ||
Disclosure of external credit grades [line items] | ||
Bank balances and deposits | 1,715 | |
US Treasury and Treasury repo only money market funds | £ 1,715 | |
Liquidity funds | 403 | |
Government securities | 78 | |
3rd party financial derivatives | 68 | |
Total | 3,979 | |
AAA/Aaa [member] | ||
Disclosure of external credit grades [line items] | ||
US Treasury and Treasury repo only money market funds | 2,248 | |
Liquidity funds | 66 | |
Total | £ 2,314 | |
AAA/Aaa [member] | Credit risk [member] | ||
Disclosure of external credit grades [line items] | ||
US Treasury and Treasury repo only money market funds | 1,715 | |
Liquidity funds | 403 | |
Total | £ 2,118 | |
AA/Aa [member] | ||
Disclosure of external credit grades [line items] | ||
Bank balances and deposits | 542 | |
Government securities | £ 85 | |
3rd party financial derivatives | 70 | |
Total | £ 697 | |
AA/Aa [member] | Credit risk [member] | ||
Disclosure of external credit grades [line items] | ||
Bank balances and deposits | 423 | |
Government securities | £ 77 | |
3rd party financial derivatives | 26 | |
Total | £ 526 | |
A/A [member] | ||
Disclosure of external credit grades [line items] | ||
Bank balances and deposits | 1,560 | |
3rd party financial derivatives | £ 86 | |
Total | £ 1,646 | |
A/A [member] | Credit risk [member] | ||
Disclosure of external credit grades [line items] | ||
Bank balances and deposits | 1,167 | |
3rd party financial derivatives | £ 42 | |
Total | £ 1,209 | |
BBB/Baa [member] | ||
Disclosure of external credit grades [line items] | ||
Bank balances and deposits | 388 | |
Government securities | £ 4 | |
Total | £ 392 | |
BBB/Baa [member] | Credit risk [member] | ||
Disclosure of external credit grades [line items] | ||
Bank balances and deposits | 80 | |
Government securities | £ 1 | |
Total | £ 81 | |
BB+/Ba1 and Below/Unrated [member] | ||
Disclosure of external credit grades [line items] | ||
Bank balances and deposits | 93 | |
Total | £ 93 | |
BB+/Ba1 and Below/Unrated [member] | Credit risk [member] | ||
Disclosure of external credit grades [line items] | ||
Bank balances and deposits | 45 | |
Total | £ 45 |
Financial Instruments and Re217
Financial Instruments and Related Disclosures - Summary of Financial Assets and Liabilities (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial assets | £ 10,906 | £ 11,987 | ||
Cash and cash equivalents | 3,833 | 4,897 | £ 5,830 | |
Total borrowings | (13,178) | (13,804) | £ (10,727) | £ (14,377) |
Trade and other payables, Other provisions and certain Other non-current liabilities in scope of IAS 39 | (20,325) | (18,713) | ||
Total financial liabilities | (43,660) | (43,593) | ||
Net financial assets and financial liabilities | (32,754) | (31,606) | ||
Total financial assets fair value | 10,906 | 11,987 | ||
Total financial liabilities fair value | (46,599) | (46,624) | ||
Net financial assets and financial liabilities | (35,693) | (34,637) | ||
Bonds In A Designated Hedging Relationship [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings excluding obligations under finance leases: | (4,315) | (3,189) | ||
Trade and Other Receivables and Certain Other Non-current Assets in Scope of IAS 39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial assets | 7,413 | 7,225 | ||
Financial Liabilities at Amortised Cost, Category [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings excluding obligations under finance leases: | (17,023) | (18,726) | ||
Obligations under finance leases | (66) | (64) | ||
Total borrowings | (17,089) | (18,790) | ||
Borrowings excluding obligations under finance leases | (19,962) | (21,757) | ||
Obligations under finance leases | (66) | (64) | ||
Total borrowings | (20,028) | (21,821) | ||
Trade and other payables, Other provisions and certain Other non-current liabilities in scope of IAS 39 | (20,325) | (18,713) | ||
Financial Liabilities at Amortised Cost, Category [member] | Bonds In A Designated Hedging Relationship [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings excluding obligations under finance leases: | (4,315) | (3,189) | ||
Borrowings excluding obligations under finance leases | (4,405) | (3,335) | ||
Financial Liabilities at Amortised Cost, Category [member] | Other Bonds [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings excluding obligations under finance leases: | (11,894) | (14,111) | ||
Borrowings excluding obligations under finance leases | (14,743) | (16,996) | ||
Financial Liabilities at Amortised Cost, Category [member] | Bank Loans and Overdrafts [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings excluding obligations under finance leases: | (236) | (332) | ||
Borrowings excluding obligations under finance leases | (236) | (332) | ||
Financial Liabilities at Amortised Cost, Category [member] | Commercial paper [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings excluding obligations under finance leases: | (529) | (1,094) | ||
Borrowings excluding obligations under finance leases | (529) | (1,094) | ||
Financial Liabilities at Amortised Cost, Category [member] | Other Borrowing [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Borrowings excluding obligations under finance leases: | (49) | |||
Borrowings excluding obligations under finance leases | (49) | |||
Financial Liabilities at Fair Value Through Profit or Loss, Category [member] | Contingent Consideration Liabilities [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial liabilities | (6,172) | (5,896) | ||
Total financial liabilities fair value | (6,172) | (5,896) | ||
Financial Liabilities at Fair Value Through Profit or Loss, Category [member] | Derivatives Financial Liabilities Designated At Fair Value Through Profit Or Loss [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial liabilities | (26) | (92) | ||
Total financial liabilities fair value | (26) | (92) | ||
Financial Liabilities at Fair Value Through Profit or Loss, Category [member] | Derivatives financial liabilities classified as held for trading under IAS39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial liabilities | (48) | (102) | ||
Total financial liabilities fair value | (48) | (102) | ||
Financial Assets Available-for-sale, Category [member] | Government bonds [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial assets | 78 | 89 | ||
Total financial assets fair value | 78 | 89 | ||
Financial Assets Available-for-sale, Category [member] | Other Investments [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial assets | 918 | 985 | ||
Total financial assets fair value | 918 | 985 | ||
Loans and Receivables, Category [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Cash and cash equivalents | 3,833 | 4,897 | ||
Total financial assets fair value | 5,495 | 5,499 | ||
Loans and Receivables, Category [member] | Trade and Other Receivables and Certain Other Non-current Assets in Scope of IAS 39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial assets | 5,495 | 5,499 | ||
Total financial assets fair value | 3,833 | 4,897 | ||
Financial Assets at Fair Value Through Profit or Loss, Category [member] | Trade and Other Receivables and Certain Other Non-current Assets in Scope of IAS 39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial assets | 506 | 361 | ||
Total financial assets fair value | 506 | 361 | ||
Financial Assets at Fair Value Through Profit or Loss, Category [member] | Derivatives Financial Assets Designated At Fair Value Through Profit Or Loss [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial assets | 5 | 23 | ||
Total financial assets fair value | 5 | 23 | ||
Financial Assets at Fair Value Through Profit or Loss, Category [member] | Derivatives Financial Assets Classified As Held For Trading Under IAS39 [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Total financial assets | 71 | 133 | ||
Total financial assets fair value | £ 71 | £ 133 |
Financial Instruments and Re218
Financial Instruments and Related Disclosures - Summary of Fair Value of Financial Instruments (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | £ 10,906 | £ 11,987 |
Financial liabilities at fair value | (46,599) | (46,624) |
At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 1,578 | 1,591 |
Financial liabilities at fair value | (6,246) | (6,090) |
Financial Liabilities at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities at fair value | (26) | (92) |
Financial Liabilities at Fair Value Through Profit or Loss That Meet Definition of Held for Trading, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities at fair value | (48) | (102) |
Financial Assets at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 23 | |
Financial Assets at Fair Value Through Profit or Loss, Classified as Held for Trading, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 133 | |
Liquid Investments [member] | Financial Assets Available-for-sale, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 78 | 89 |
Other Investments [member] | Financial Assets Available-for-sale, Category [member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 918 | 985 |
Other Investments [member] | Financial Assets Available-for-sale, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 918 | 985 |
Other non-current assets [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 6 | |
Other non-current assets [member] | Financial Assets Available-for-sale, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 38 | |
Other non-current assets [member] | Financial Assets at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 426 | |
Other non-current assets [member] | Financial Assets at Fair Value Through Profit or Loss, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 355 | |
Trade and Other Receivable [member] | Financial Assets at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 42 | |
Derivatives Financial Assets Designated At Fair Value Through Profit Or Loss [member] | Financial Assets at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 5 | |
Derivatives Financial Assets Designated At Fair Value Through Profit Or Loss [member] | Financial Assets at Fair Value Through Profit or Loss, Category [member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 5 | 23 |
Derivatives assets held for trading [Member] | Financial Assets at Fair Value Through Profit or Loss, Classified as Held for Trading, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 71 | |
Contingent Consideration Liabilities [member] | Financial Liabilities at Fair Value Through Profit or Loss, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities at fair value | (6,172) | (5,896) |
Level 1 of fair value hierarchy [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 612 | 664 |
Level 1 of fair value hierarchy [member] | Liquid Investments [member] | Financial Assets Available-for-sale, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 77 | 84 |
Level 1 of fair value hierarchy [member] | Other Investments [member] | Financial Assets Available-for-sale, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 535 | 580 |
Level 2 of fair value hierarchy [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 450 | 516 |
Financial liabilities at fair value | (73) | (193) |
Level 2 of fair value hierarchy [member] | Financial Liabilities at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities at fair value | (26) | (92) |
Level 2 of fair value hierarchy [member] | Financial Liabilities at Fair Value Through Profit or Loss That Meet Definition of Held for Trading, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities at fair value | (47) | (101) |
Level 2 of fair value hierarchy [member] | Financial Assets at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 23 | |
Level 2 of fair value hierarchy [member] | Financial Assets at Fair Value Through Profit or Loss, Classified as Held for Trading, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 133 | |
Level 2 of fair value hierarchy [member] | Liquid Investments [member] | Financial Assets Available-for-sale, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 1 | 5 |
Level 2 of fair value hierarchy [member] | Other non-current assets [member] | Financial Assets at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 382 | |
Level 2 of fair value hierarchy [member] | Other non-current assets [member] | Financial Assets at Fair Value Through Profit or Loss, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 355 | |
Level 2 of fair value hierarchy [member] | Derivatives Financial Assets Designated At Fair Value Through Profit Or Loss [member] | Financial Assets at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 5 | |
Level 2 of fair value hierarchy [member] | Derivatives assets held for trading [Member] | Financial Assets at Fair Value Through Profit or Loss, Classified as Held for Trading, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 62 | |
Level 3 [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 516 | 411 |
Financial liabilities at fair value | (6,173) | (5,897) |
Level 3 [member] | Financial Liabilities at Fair Value Through Profit or Loss That Meet Definition of Held for Trading, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities at fair value | (1) | (1) |
Level 3 [member] | Other Investments [member] | Financial Assets Available-for-sale, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 383 | 405 |
Level 3 [member] | Other non-current assets [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 6 | |
Level 3 [member] | Other non-current assets [member] | Financial Assets Available-for-sale, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 38 | |
Level 3 [member] | Other non-current assets [member] | Financial Assets at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 44 | |
Level 3 [member] | Trade and Other Receivable [member] | Financial Assets at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 42 | |
Level 3 [member] | Derivatives assets held for trading [Member] | Financial Assets at Fair Value Through Profit or Loss, Classified as Held for Trading, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial assets at fair value | 9 | |
Level 3 [member] | Contingent Consideration Liabilities [member] | Financial Liabilities at Fair Value Through Profit or Loss, Category [member] | At Fair Value [Member] | ||
Disclosure Of Financial Assets And Liabilities [Line Items] | ||
Financial liabilities at fair value | £ (6,172) | £ (5,896) |
Financial Instruments and Re219
Financial Instruments and Related Disclosures - Summary of Movement in Financial Instruments Measured Using Level 3 Valuation Method (Detail) - Level 3 [member] - GBP (£) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of fair value measurement of assets and liabilities [Line Items] | ||
Beginning balance | £ (5,486) | £ (3,582) |
Net losses recognised in the income statement | (970) | (2,283) |
Net gains recognised in other comprehensive income | 22 | 29 |
Contingent consideration for businesses divested/acquired during the year | 80 | (194) |
Payment of contingent consideration liabilities | 685 | 431 |
Additions | 117 | 81 |
Disposals | (52) | (15) |
Transfers from Level 3 | (24) | (11) |
Exchange | (29) | 58 |
Ending balance | £ (5,657) | £ (5,486) |
Financial instruments and re220
Financial instruments and related disclosures - Summary of Financial Assets and Non Financial Assets (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets and non financial assets [Line Items] | ||
Trade and other receivables (Note 24) | £ 6,000 | £ 6,026 |
Other non-current assets (Note 22) | 1,413 | 1,199 |
Financial assets | 10,906 | 11,987 |
Trade and Other Receivables and Certain Other Non-current Assets in Scope of IAS 39 [member] | ||
Disclosure of financial assets and non financial assets [Line Items] | ||
Trade and other receivables (Note 24) | 6,000 | 6,026 |
Other non-current assets (Note 22) | 1,413 | 1,199 |
Financial assets | 7,413 | 7,225 |
Financial Assets at Fair Value Through Profit or Loss, Category [member] | Trade and Other Receivables and Certain Other Non-current Assets in Scope of IAS 39 [member] | ||
Disclosure of financial assets and non financial assets [Line Items] | ||
Trade and other receivables (Note 24) | 42 | |
Other non-current assets (Note 22) | 464 | 361 |
Financial assets | 506 | 361 |
Loans and Receivables, Category [member] | Trade and Other Receivables and Certain Other Non-current Assets in Scope of IAS 39 [member] | ||
Disclosure of financial assets and non financial assets [Line Items] | ||
Trade and other receivables (Note 24) | 5,148 | 5,135 |
Other non-current assets (Note 22) | 347 | 364 |
Financial assets | 5,495 | 5,499 |
Financial Instruments [member] | Trade and Other Receivables and Certain Other Non-current Assets in Scope of IAS 39 [member] | ||
Disclosure of financial assets and non financial assets [Line Items] | ||
Trade and other receivables (Note 24) | 5,190 | 5,135 |
Other non-current assets (Note 22) | 811 | 725 |
Financial assets | 6,001 | 5,860 |
Non Financial Instruments [member] | Trade and Other Receivables and Certain Other Non-current Assets in Scope of IAS 39 [member] | ||
Disclosure of financial assets and non financial assets [Line Items] | ||
Trade and other receivables (Note 24) | 810 | 891 |
Other non-current assets (Note 22) | 602 | 474 |
Financial assets | £ 1,412 | £ 1,365 |
Financial instruments and re221
Financial instruments and related disclosures - Schedule of Ageing of Financial Assets Which Are Past Due and For Which No Provision for Bad or Doubtful Debts Has Been Made (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial assets that are past due but not impaired [line items] | ||
Financial Assets | £ 10,906 | £ 11,987 |
Financial Assets Past Due and No Provision for Bad and Doubtful Debt [member] | ||
Disclosure of financial assets that are past due but not impaired [line items] | ||
Financial Assets | 411 | 521 |
Financial Assets Past Due and No Provision for Bad and Doubtful Debt [member] | Past Due by 1-30 Days [member] | ||
Disclosure of financial assets that are past due but not impaired [line items] | ||
Financial Assets | 142 | 137 |
Financial Assets Past Due and No Provision for Bad and Doubtful Debt [member] | Past Due by 31-90 Days [member] | ||
Disclosure of financial assets that are past due but not impaired [line items] | ||
Financial Assets | 70 | 178 |
Financial Assets Past Due and No Provision for Bad and Doubtful Debt [member] | Past Due by 91-180 Days [member] | ||
Disclosure of financial assets that are past due but not impaired [line items] | ||
Financial Assets | 64 | 55 |
Financial Assets Past Due and No Provision for Bad and Doubtful Debt [member] | Past Due by 181-365 Days [member] | ||
Disclosure of financial assets that are past due but not impaired [line items] | ||
Financial Assets | 27 | 53 |
Financial Assets Past Due and No Provision for Bad and Doubtful Debt [member] | Past Due by More Than 365 Days [member] | ||
Disclosure of financial assets that are past due but not impaired [line items] | ||
Financial Assets | £ 108 | £ 98 |
Financial instruments and re222
Financial instruments and related disclosures - Reconciliation of financial instruments within Trade and other payables, Other provisions, Other non-current liabilities and Contingent consideration liabilities (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of financial liabilities [line items] | ||
Other provisions (Note 29) | £ (1,265) | £ (1,500) |
Other non-currentliabilities (Note 30) | (981) | (8,445) |
Financial liabilities | (43,660) | (43,593) |
Trade and Other Payables, Other Provisions and Certain Other Non-Current Liabilities in Scope of IAS 39 [member] | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables (Note 27) | (20,970) | (11,964) |
Other provisions (Note 29) | (1,265) | (1,500) |
Other non-currentliabilities (Note 30) | (981) | (8,445) |
Contingent consideration liabilities (Note 39) | (6,172) | (5,896) |
Financial liabilities | (29,388) | (27,805) |
Financial Liabilities at Fair Value Through Profit or Loss, Category [member] | Trade and Other Payables, Other Provisions and Certain Other Non-Current Liabilities in Scope of IAS 39 [member] | ||
Disclosure of financial liabilities [line items] | ||
Contingent consideration liabilities (Note 39) | (6,172) | (5,896) |
Financial liabilities | (6,172) | (5,896) |
Other Liabilities [member] | Trade and Other Payables, Other Provisions and Certain Other Non-Current Liabilities in Scope of IAS 39 [member] | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables (Note 27) | (20,129) | (11,041) |
Other provisions (Note 29) | (117) | (113) |
Other non-currentliabilities (Note 30) | (79) | (7,559) |
Financial liabilities | (20,325) | (18,713) |
Financial Instruments [member] | Trade and Other Payables, Other Provisions and Certain Other Non-Current Liabilities in Scope of IAS 39 [member] | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables (Note 27) | (20,129) | (11,041) |
Other provisions (Note 29) | (117) | (113) |
Other non-currentliabilities (Note 30) | (79) | (7,559) |
Contingent consideration liabilities (Note 39) | (6,172) | (5,896) |
Financial liabilities | (26,497) | (24,609) |
Non Financial Instruments [member] | Trade and Other Payables, Other Provisions and Certain Other Non-Current Liabilities in Scope of IAS 39 [member] | ||
Disclosure of financial liabilities [line items] | ||
Trade and other payables (Note 27) | (841) | (923) |
Other provisions (Note 29) | (1,148) | (1,387) |
Other non-currentliabilities (Note 30) | (902) | (886) |
Financial liabilities | £ (2,891) | £ (3,196) |
Financial instruments and re223
Financial instruments and related disclosures - Fair Values of Derivatives Held (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Assets | £ 76 | £ 156 |
Fair value of Liabilities | (74) | (194) |
Financial Assets at Fair Value Through Profit or Loss, Mandatory Measured at Fair Value, Category [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Assets | 5 | 23 |
Financial Assets at Fair Value Through Profit or Loss, Mandatory Measured at Fair Value, Category [member] | Net Investment Hedges [member] | Foreign Exchange Contracts [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Assets | 5 | 18 |
Financial Assets at Fair Value Through Profit or Loss, Mandatory Measured at Fair Value, Category [member] | Cash Flow Hedges [member] | Foreign Exchange Contracts [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Assets | 5 | |
Financial Assets at Fair Value Through Profit or Loss, Classified as Held for Trading, Category [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Assets | 71 | 133 |
Financial Assets at Fair Value Through Profit or Loss, Classified as Held for Trading, Category [member] | Foreign Exchange Contracts [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Assets | 62 | 133 |
Financial Assets at Fair Value Through Profit or Loss, Classified as Held for Trading, Category [member] | Embedded and Other Derivatives [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Assets | 9 | |
Financial Liabilities at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Liabilities | (26) | (92) |
Financial Liabilities at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | Net Investment Hedges [member] | Foreign Exchange Contracts [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Liabilities | (25) | (92) |
Financial Liabilities at Fair Value Through Profit or Loss, Designated Upon Initial Recognition or Subsequently, Category [member] | Cash Flow Hedges [member] | Foreign Exchange Contracts [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Liabilities | (1) | |
Financial Liabilities at Fair Value Through Profit or Loss That Meet Definition of Held for Trading, Category [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Liabilities | (48) | (102) |
Financial Liabilities at Fair Value Through Profit or Loss That Meet Definition of Held for Trading, Category [member] | Foreign Exchange Contracts [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Liabilities | (47) | (99) |
Financial Liabilities at Fair Value Through Profit or Loss That Meet Definition of Held for Trading, Category [member] | Embedded and Other Derivatives [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Fair value of Liabilities | £ (1) | £ (3) |
Financial instruments and re224
Financial instruments and related disclosures - Fair Values of Derivatives Held (Parenthetical) (Detail) - Foreign Exchange Contracts [member] | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets at Fair Value Through Profit or Loss, Mandatory Measured at Fair Value, Category [member] | Net Investment Hedges [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Principal amount | 6,333,000,000 | 5,362,000,000 |
Financial Assets at Fair Value Through Profit or Loss, Mandatory Measured at Fair Value, Category [member] | Cash Flow Hedges [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Principal amount | 38,000,000 | 170,000,000 |
Financial Assets at Fair Value Through Profit or Loss, Classified as Held for Trading, Category [member] | ||
Disclosure of detailed information about hedging instruments [line items] | ||
Principal amount | 14,449,000,000 | 14,943,000,000 |
Financial instruments and re225
Financial instruments and related disclosures - Schedule of Offsetting of Financial Assets and Liabilities (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Trade and Other Receivable [member] | ||
Disclosure of offsetting of financial assets and financial liabilities [Line Items] | ||
Gross financial assets/(liabilities) | £ 5,191 | £ 5,136 |
Gross financial (Liabilities)/assets set off | (1) | (1) |
Net financial assets/(liabilities)per balance sheet | 5,190 | 5,135 |
Related amounts not set off in the balance sheet | (31) | (29) |
Net amount | 5,159 | 5,106 |
Derivative financial assets [member] | ||
Disclosure of offsetting of financial assets and financial liabilities [Line Items] | ||
Gross financial assets/(liabilities) | 76 | 156 |
Net financial assets/(liabilities)per balance sheet | 76 | 156 |
Related amounts not set off in the balance sheet | (64) | (117) |
Net amount | 12 | 39 |
Trades and other payables [member] | ||
Disclosure of offsetting of financial assets and financial liabilities [Line Items] | ||
Gross financial assets/(liabilities) | (20,130) | (11,042) |
Gross financial (Liabilities)/assets set off | 1 | 1 |
Net financial assets/(liabilities)per balance sheet | (20,129) | (11,041) |
Related amounts not set off in the balance sheet | 31 | 29 |
Net amount | (20,098) | (11,012) |
Derivative financial liabilities [member] | ||
Disclosure of offsetting of financial assets and financial liabilities [Line Items] | ||
Gross financial assets/(liabilities) | (74) | (194) |
Net financial assets/(liabilities)per balance sheet | (74) | (194) |
Related amounts not set off in the balance sheet | 64 | 117 |
Net amount | £ (10) | £ (77) |
Financial instruments and re226
Financial instruments and related disclosures - Schedule of Debt Interest Rate Repricing (Detail) - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of debt interest rate repricing [Line Items] | ||
Total debt | £ (17,023) | £ (18,726) |
Total interest bearing | (16,974) | (18,723) |
Non-interest bearing | (49) | (3) |
Total debt | (17,023) | (18,726) |
Floating and Fixed Rate Debt [member] | Later Than One Year [Member] | ||
Disclosure of debt interest rate repricing [Line Items] | ||
Total debt | (2,802) | (4,106) |
Total debt | (2,802) | (4,106) |
Floating and Fixed Rate Debt [member] | Between one and two years [member] | ||
Disclosure of debt interest rate repricing [Line Items] | ||
Total debt | (1,340) | (2,216) |
Total debt | (1,340) | (2,216) |
Floating and Fixed Rate Debt [member] | Between two and three years [member] | ||
Disclosure of debt interest rate repricing [Line Items] | ||
Total debt | (1,076) | (1,277) |
Total debt | (1,076) | (1,277) |
Floating and Fixed Rate Debt [member] | Between Three and Four Years [Member] | ||
Disclosure of debt interest rate repricing [Line Items] | ||
Total debt | (16) | |
Total debt | (16) | |
Floating and Fixed Rate Debt [member] | Between four and five years [member] | ||
Disclosure of debt interest rate repricing [Line Items] | ||
Total debt | (1,475) | |
Total debt | (1,475) | |
Floating and Fixed Rate Debt [member] | Between Five and Ten Years [Member] | ||
Disclosure of debt interest rate repricing [Line Items] | ||
Total debt | (3,664) | (4,082) |
Total debt | (3,664) | (4,082) |
Floating and Fixed Rate Debt [member] | Greater Than Ten Years [Member] | ||
Disclosure of debt interest rate repricing [Line Items] | ||
Total debt | (6,650) | (7,045) |
Total debt | (6,650) | (7,045) |
Fixed interest rate [member] | ||
Disclosure of debt interest rate repricing [Line Items] | ||
Total interest bearing | (16,209) | (17,342) |
Floating interest rate [member] | ||
Disclosure of debt interest rate repricing [Line Items] | ||
Total interest bearing | £ (765) | £ (1,381) |
Financial instruments and re227
Financial instruments and related disclosures - Impact of Non-functional Currency Foreign Exchange Exposures (Detail) - GBP (£) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
10 cent appreciation of the US Dollar [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase/(decrease) in income | £ 76,000,000 | £ 77,000,000 |
(Increase)/decrease in net debt | (637,000,000) | (746,000,000) |
10 cent appreciation of the Euro [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase/(decrease) in income | (5,000,000) | 18,000,000 |
(Increase)/decrease in net debt | 197,000,000 | 190,000,000 |
10 Yen appreciation of the Yen [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase/(decrease) in income | 9,000,000 | 1,000,000 |
(Increase)/decrease in net debt | (4,000,000) | (11,000,000) |
10 cent depreciation of US Dollar [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase/(decrease) in income | (66) | (66) |
(Increase)/decrease in net debt | 549,000,000 | 634,000,000 |
10 cent depreciation of Euro [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase/(decrease) in income | 4 | (16) |
(Increase)/decrease in net debt | (165,000,000) | (160,000,000) |
Yen Exchange Rates [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase/(decrease) in income | (8) | (1) |
10 cent depreciation of Yen [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
(Increase)/decrease in net debt | £ 4,000,000 | £ 10,000,000 |
Financial instruments and re228
Financial instruments and related disclosures - Impact of Interest Rate Currency Movements (Detail) - GBP (£) £ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
1% (100 basis points) increase in sterling interest rates [member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase/(decrease) in income | £ 24 | £ 3 |
1% (100 Basis Points) Increase in US Dollar Interest Rates [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase/(decrease) in income | (24) | (3) |
1% (100 Basis Points) Increase in Euro Interest Rates [Member] | ||
Disclosure of nature and extent of risks arising from financial instruments [line items] | ||
Increase/(decrease) in income | £ 5 | £ 3 |
Financial instruments and re229
Financial instruments and related disclosures - Summary of Maturity Analysis for Non-derivative Financial Liabilities (Detail) - GBP (£) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Finance charge o s obligations ce under finance leases £m | £ (66) | £ (64) |
Finance charge on obligations under finance leases | 12 | 3 |
Non Derivatives Financial Liabilities [Member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt | (17,137,000,000) | (18,849,000,000) |
Interest on debt | 8,510,000,000 | (9,410,000,000) |
Finance charge o s obligations ce under finance leases £m | (66,000,000) | (64,000,000) |
Finance charge on obligations under finance leases | (12,000,000) | (3,000,000) |
and not t | (29,803,000,000) | (29,466,000,000) |
Total | (55,528,000,000) | (57,792,000,000) |
Non Derivatives Financial Liabilities [Member] | Not later than one year [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt | (2,802,000,000) | (4,108,000,000) |
Interest on debt | 555,000,000 | (705,000,000) |
Finance charge o s obligations ce under finance leases £m | (23,000,000) | (23,000,000) |
Finance charge on obligations under finance leases | (2,000,000) | (2,000,000) |
and not t | (21,521,000,000) | (11,621,000,000) |
Total | (24,903,000,000) | (16,459,000,000) |
Non Derivatives Financial Liabilities [Member] | Between one and two years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt | (1,344,000,000) | (2,218,000,000) |
Interest on debt | 497,000,000 | (566,000,000) |
Finance charge o s obligations ce under finance leases £m | (27,000,000) | (22,000,000) |
Finance charge on obligations under finance leases | (2,000,000) | (1,000,000) |
and not t | (853,000,000) | (8,784,000,000) |
Total | (2,723,000,000) | (11,591,000,000) |
Non Derivatives Financial Liabilities [Member] | Between two and three years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt | (1,078,000,000) | (1,282,000,000) |
Interest on debt | 488,000,000 | (503,000,000) |
Finance charge o s obligations ce under finance leases £m | (8,000,000) | (12,000,000) |
Finance charge on obligations under finance leases | (1,000,000) | |
and not t | (813,000,000) | (961,000,000) |
Total | (2,388,000,000) | (2,758,000,000) |
Non Derivatives Financial Liabilities [Member] | Between Three and Four Years [Member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt | (16,000,000) | |
Interest on debt | 488,000,000 | (496,000,000) |
Finance charge o s obligations ce under finance leases £m | (2,000,000) | (7,000,000) |
Finance charge on obligations under finance leases | (1,000,000) | |
and not t | (784,000,000) | (786,000,000) |
Total | (1,291,000,000) | (1,289,000,000) |
Non Derivatives Financial Liabilities [Member] | Between four and five years [member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt | (1,483,000,000) | |
Interest on debt | 468,000,000 | (496,000,000) |
Finance charge o s obligations ce under finance leases £m | (1,000,000) | |
Finance charge on obligations under finance leases | (1,000,000) | |
and not t | (752,000,000) | (705,000,000) |
Total | (2,705,000,000) | (1,201,000,000) |
Non Derivatives Financial Liabilities [Member] | Between Five and Ten Years [Member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt | (3,694,000,000) | (4,117,000,000) |
Interest on debt | 2,018,000,000 | (2,122,000,000) |
Finance charge o s obligations ce under finance leases £m | (5,000,000) | |
Finance charge on obligations under finance leases | (5,000,000) | |
and not t | (3,609,000,000) | (3,474,000,000) |
Total | (9,331,000,000) | (9,713,000,000) |
Non Derivatives Financial Liabilities [Member] | Greater Than Ten Years [Member] | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Debt | (6,720,000,000) | (7,124,000,000) |
Interest on debt | 3,996,000,000 | (4,522,000,000) |
and not t | (1,471,000,000) | (3,135,000,000) |
Total | £ (12,187,000,000) | £ (14,781,000,000) |
Financial instruments and re230
Financial instruments and related disclosures - Summary Anticipated Contractual Cash Flows for Derivative Instruments, Excluding Embedded Derivatives and Equity Options, Using Undiscounted Cash Flows (Detail) - Derivative Instruments [Member] - GBP (£) £ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | £ 20,319 | £ 21,286 |
Payables | (20,326) | (21,323) |
Not later than one year [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 20,319 | 21,266 |
Payables | £ (20,326) | (21,303) |
Between one and two years [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Receivables | 20 | |
Payables | £ (20) |
Employee Share Schemes - Additi
Employee Share Schemes - Additional Information (Detail) £ / shares in Units, shares in Thousands, £ in Millions | 12 Months Ended | |||||
Dec. 31, 2017GBP (£)shares£ / shares | Dec. 31, 2017shares£ / shares$ / shares | Dec. 31, 2016GBP (£)shares£ / shares | Dec. 31, 2016$ / shares | Dec. 31, 2015GBP (£)shares£ / shares | Dec. 31, 2015$ / shares | |
Disclosure of employee share schemes [Line Items] | ||||||
Cost of share-based incentive plans | £ | £ 347 | £ 338 | £ 349 | |||
Savings-Related Share Option Schemes [member] | ||||||
Disclosure of employee share schemes [Line Items] | ||||||
Percentage of share options granted at market price | 20.00% | |||||
Number of options granted | 2,000 | |||||
Weighted average fair value of options granted | £ / shares | £ 2.08 | £ 2.08 | ||||
Number share options were not exercisable | 6,700 | 6,700 | ||||
Share Value Plan [member] | ||||||
Disclosure of employee share schemes [Line Items] | ||||||
Cost of share-based incentive plans | £ | £ 276 | £ 271 | £ 307 | |||
Expected future dividend yield percentage share granted | 4.80% | 4.50% | 5.70% | |||
Number of awards granted | 13,018 | 12,983 | 13,019 | |||
Weighted average fair value of awards | £ / shares | £ 13.68 | £ 14.97 | £ 11.57 | |||
Share Value Plan [member] | American Depositary Shares [member] | ||||||
Disclosure of employee share schemes [Line Items] | ||||||
Number of awards granted | 6,610 | 6,589 | 7,198 | |||
Weighted average fair value of awards | $ / shares | £ 35.63 | $ 39.18 | $ 35.66 | |||
Performance Share Plan [member] | ||||||
Disclosure of employee share schemes [Line Items] | ||||||
Cost of share-based incentive plans | £ | £ 47 | £ 39 | £ 26 | |||
Number of awards granted | 3,900 | |||||
Weighted average fair value of awards | £ / shares | £ 11.09 | |||||
Number of outstanding awards | 12,900 | 12,900 | ||||
Performance Share Plan [member] | American Depositary Shares [member] | ||||||
Disclosure of employee share schemes [Line Items] | ||||||
Number of awards granted | 1 | |||||
Weighted average fair value of awards | $ / shares | £ 32.85 | |||||
Number of outstanding awards | 3,200 | 3,200 | ||||
Employee share ownership plan [member] | ||||||
Disclosure of employee share schemes [Line Items] | ||||||
Number of treasury shares acquired by ESOP trusts | £ | £ 610 |
Employee Share Schemes - Schedu
Employee Share Schemes - Schedule of Number of Shares and ADS Issuable (Detail) - Share Value Plan [member] shares in Thousands | 12 Months Ended | |||||
Dec. 31, 2017shares£ / shares | Dec. 31, 2017shares$ / shares | Dec. 31, 2016shares£ / shares | Dec. 31, 2016shares$ / shares | Dec. 31, 2015shares£ / shares | Dec. 31, 2015shares$ / shares | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of shares, Beginning balance | 32,855 | 32,855 | 32,577 | 32,577 | 32,912 | 32,912 |
Number of shares, Awards granted | 13,018 | 13,018 | 12,983 | 12,983 | 13,019 | 13,019 |
Number of shares, Awards exercised | (10,596) | (10,596) | (11,198) | (11,198) | (11,476) | (11,476) |
Number of shares, Awards cancelled | (1,352) | (1,352) | (1,507) | (1,507) | (1,878) | (1,878) |
Number of shares, Ending balance | 33,925 | 33,925 | 32,855 | 32,855 | 32,577 | 32,577 |
Weighted fair value, Awards granted | £ / shares | £ 13.68 | £ 14.97 | £ 11.57 | |||
American Depositary Shares [member] | ||||||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||||||
Number of shares, Beginning balance | 17,083 | 17,083 | 17,520 | 17,520 | 21,227 | 21,227 |
Number of shares, Awards granted | 6,610 | 6,610 | 6,589 | 6,589 | 7,198 | 7,198 |
Number of shares, Awards exercised | (5,674) | (5,674) | (6,214) | (6,214) | (8,878) | (8,878) |
Number of shares, Awards cancelled | (627) | (627) | (812) | (812) | (2,027) | (2,027) |
Number of shares, Ending balance | 17,392 | 17,392 | 17,083 | 17,083 | 17,520 | 17,520 |
Weighted fair value, Awards granted | $ / shares | $ 35.63 | $ 39.18 | $ 35.66 |
Employee Share Schemes - Summar
Employee Share Schemes - Summary of Valuation Model Used to Valuing Saving - Related Option to Arrive at the Share Based Payment Charge (Detail) - Share Options and Savings-Related Options [member] - £ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Disclosure of share options and savings related options [Line Items] | |||
Risk-free interest rate | 0.54% | 0.32% | 0.88% |
Dividend yield | 5.90% | 4.90% | 6.50% |
Volatility | 23.00% | 23.00% | 21.00% |
Expected life | 3 years | 3 years | 3 years |
Savings-related options grant price (including 20% discount) | £ 10.86 | £ 12.95 | £ 10.14 |
Employee Share Schemes - Sum234
Employee Share Schemes - Summary of Valuation Model Used to Valuing Saving - Related Option to Arrive at the Share Based Payment Charge (Parenthetical) (Detail) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share Options and Savings-Related Options [member] | |||
Disclosure of share options and savings related options [Line Items] | |||
Savings-related options grant price discount | 20.00% | 20.00% | 20.00% |
Employee Share Schemes - Sum235
Employee Share Schemes - Summary of Option Outstanding (Detail) - Dec. 31, 2017 shares in Thousands | sharesyr£ / shares | sharesyr$ / shares |
Share Option Schemes [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of Shares | shares | 3,600 | 3,600 |
Share option schemes - shares Weighted exercise price | £ 11.86 | |
Weighted average market price on exercise during year | £ 16.07 | |
Weighted average remaining contractual life | yr | 1.4 | 1.4 |
Share Option Schemes [member] | Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Range of exercise prices on options outstanding at year end | £ 12.21 | |
Share Option Schemes [member] | Bottom of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Range of exercise prices on options outstanding at year end | £ 11.47 | |
Share Option Schemes American Depositary Shares [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of Shares | shares | 3,277 | 3,277 |
Share option schemes - shares Weighted exercise price | $ / shares | $ 39.62 | |
Weighted average market price on exercise during year | $ / shares | $ 41.50 | |
Weighted average remaining contractual life | yr | 1 | 1 |
Share Option Schemes American Depositary Shares [member] | Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Range of exercise prices on options outstanding at year end | $ / shares | $ 48.66 | |
Share Option Schemes American Depositary Shares [member] | Bottom of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Range of exercise prices on options outstanding at year end | $ / shares | $ 33.42 | |
Savings-Related Share Option Schemes [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Number of Shares | shares | 6,852 | 6,852 |
Share option schemes - shares Weighted exercise price | £ 10.77 | |
Weighted average market price on exercise during year | £ 14.28 | |
Weighted average remaining contractual life | yr | 2.1 | 2.1 |
Savings-Related Share Option Schemes [member] | Top of range [member] | ||
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Range of exercise prices on options outstanding at year end | £ 12.95 |
Employee Share Schemes - Sum236
Employee Share Schemes - Summary of Shares Held for Share Award Schemes (Detail) - Employee share ownership plan [member] pure in Thousands, £ in Millions | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) |
Disclosure of terms and conditions of share-based payment arrangement [line items] | ||
Shares held for share award schemes, Number of shares | 66,558 | 42,571 |
Shares held for share award schemes, Nominal value | £ 17 | £ 11 |
Shares held for share award schemes, Carrying value | 399 | 285 |
Shares held for share award schemes, Market value | £ 880 | £ 665 |
Shares held for share option schemes, Number of shares | 139 | 139 |
Shares held for share option schemes, Nominal value | £ 0 | £ 0 |
Shares held for share option schemes, Carrying value | 1 | 1 |
Shares held for share option schemes, Market value | £ 2 | £ 2 |
Principal Group companies - Sch
Principal Group companies - Schedule of the Subsidiaries and Their Counties of Incorporation and the Equity Share Capital of These Entities wholly owned by the Group (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
GlaxoSmithKline Argentina S.A. [member] | Argentina [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Argentina S.A. |
Country of incorporation | Argentina |
GlaxoSmithKline Australia Pty Ltd [Member] | Australia [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Australia Pty Ltd |
Country of incorporation | Australia |
GlaxoSmithKline Consumer Healthcare Australia Pty Ltd [member] | Australia [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Consumer Healthcare Australia Pty Ltd |
Country of incorporation | Australia |
GlaxoSmithKline Brasil Limitada [Member] | Brazil [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Brasil Limitada |
Country of incorporation | Brazil |
GlaxoSmithKline Consumer Healthcare Inc. [Member] | Canada [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Consumer Healthcare Inc. |
Country of incorporation | Canada |
GlaxoSmithKline Inc. [Member] | Canada [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Inc. |
Country of incorporation | Canada |
ID Biomedical Corporation of Quebec [Member] | Canada [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | ID Biomedical Corporation of Quebec |
Country of incorporation | Canada |
GlaxoSmithKline Limited [Member] | China (Hong Kong) [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Limited |
Country of incorporation | China (Hong Kong) |
Sino-American Tianjin Smith Kline and French Laboratories Ltd [Member] | China [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Sino-American Tianjin Smith Kline & French Laboratories Ltd |
Country of incorporation | China |
GlaxoSmithKline Consumer Healthcare Limited [member] | India [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Consumer Healthcare Limited |
Country of incorporation | India |
GlaxoSmithKline Pharmaceuticals Limited [member] | India [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Pharmaceuticals Limited |
Country of incorporation | India |
GlaxoSmithKline Consumer Healthcare Japan K.K. [member] | Japan [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Consumer Healthcare Japan K.K. |
Country of incorporation | Japan |
GlaxoSmithKline K.K. [member] | Japan [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline K.K. |
Country of incorporation | Japan |
ViiV Healthcare Kabushiki Kaisha [member] | Japan [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | ViiV Healthcare Kabushiki Kaisha |
Country of incorporation | Japan |
GlaxoSmithKline Pakistan Limited [member] | Pakistan [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Pakistan Limited |
Country of incorporation | Pakistan |
Glaxo Wellcome Manufacturing Pte Ltd. [member] | Singapore [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Glaxo Wellcome Manufacturing Pte Ltd. |
Country of incorporation | Singapore |
GlaxoSmithKline Korea Limited [member] | Republic of Korea [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Korea Limited |
Country of incorporation | Republic of Korea |
GlaxoSmithKline llaclari Sanayi ve Ticaret A.S. [member] | Turkey [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline llaclari Sanayi ve Ticaret A.S. |
Country of incorporation | Turkey |
GlaxoSmithKline Biologicals SA [Member] | Belgium [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Biologicals SA |
Country of incorporation | Belgium |
GlaxoSmithKline Pharmaceuticals S.A. [Member] | Belgium [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Pharmaceuticals SA |
Country of incorporation | Belgium |
GlaxoSmithKline Pharmaceuticals S.A. [Member] | Poland [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Pharmaceuticals S.A. |
Country of incorporation | Poland |
GlaxoSmithKline Biologicals S.A.S. [Member] | France [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Biologicals S.A.S. |
Country of incorporation | France |
GlaxoSmithKline Sante Grand Public SAS [Member] | France [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Sante Grand Public SAS |
Country of incorporation | France |
Laboratoire GlaxoSmithKline [Member] | France [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Laboratoire GlaxoSmithKline |
Country of incorporation | France |
ViiV Healthcare SAS [Member] | France [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | ViiV Healthcare SAS |
Country of incorporation | France |
GlaxoSmithKline Consumer Healthcare GmbH and Co. KG [member] | Germany [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Consumer Healthcare GmbH & Co. KG |
Country of incorporation | Germany |
GlaxoSmithKline GmbH and Co. KG [member] | Germany [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline GmbH & Co. KG |
Country of incorporation | Germany |
GSK Vaccines GmbH [Member] | Germany [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GSK Vaccines GmbH |
Country of incorporation | Germany |
GlaxoSmithKline Consumer Healthcare S.p.A. [Member] | Italy [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Consumer Healthcare S.p.A. |
Country of incorporation | Italy |
GlaxoSmithKline S.p.A. [Member] | Italy [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline S.p.A. |
Country of incorporation | Italy |
GSK Vaccines S.r.l. [Member] | Italy [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GSK Vaccines S.r.l. |
Country of incorporation | Italy |
GlaxoSmithKline B.V. [Member] | Netherlands [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline B.V. |
Country of incorporation | Netherlands |
GlaxoSmithKline Consumer Healthcare S p z o o [member] | Poland [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Consumer Haelthcare Sp.z.o.o. |
Country of incorporation | Poland |
GSK Services Sp z o.o. [Member] | Poland [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GSK Services Sp z o.o. |
Country of incorporation | Poland |
GlaxoSmithKline Trading Services Limited [Member] | Ireland [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Trading Services Limited |
Country of incorporation | Republic of Ireland |
GlaxoSmithKline Healthcare AO [member] | Russia [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Healthcare AO |
Country of incorporation | Russia |
GlaxoSmithKline S.A. [Member] | Spain [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline S.A. |
Country of incorporation | Spain |
Laboratorios ViiV Healthcare, S.L. [Member] | Spain [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Laboratorios ViiV Healthcare, S.L. |
Country of incorporation | Spain |
Novartis Consumer Health S.A. [Member] | Switzerland [Member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Novartis Consumer Health S.A. |
Country of incorporation | Switzerland |
Block Drug Company Inc. [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Block Drug Company, Inc. |
Country of incorporation | US |
Corixa Corporation [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Corixa Corporation |
Country of incorporation | US |
GlaxoSmithKline Capital Inc. [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Capital Inc. |
Country of incorporation | US |
GlaxoSmithKline Consumer Health Care L P [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Consumer Healthcare, L.P. |
Country of incorporation | US |
GlaxoSmithKline Holdings (Americas) Inc. [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Holdings (Americas) Inc. |
Country of incorporation | US |
GlaxoSmithKline LLC [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline LLC |
Country of incorporation | US |
Human Genome Sciences, Inc. [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Human Genome Sciences, Inc. |
Country of incorporation | US |
GSK Consumer Health, Inc [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GSK Consumer Health, Inc. (formerly Novartis Consumer Health, Inc.) |
Country of incorporation | US |
S.R One, Limited [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | S.R. One, Limited |
Country of incorporation | US |
Stiefel Laboratories, Inc. [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Stiefel Laboratories, Inc. |
Country of incorporation | US |
Vii V Health Care Company [member] | US [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | ViiV Healthcare Company |
Country of incorporation | US |
Glaxo Group Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Glaxo Group Limited |
Country of incorporation | England |
Glaxo Operations UK Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Glaxo Operations UK Limited |
Country of incorporation | England |
GlaxoSmithKline Capital PLC [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Capital plc |
Country of incorporation | England |
GlaxoSmithKline Consumer Healthcare Holdings Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Consumer Healthcare Holdings Limited |
Country of incorporation | England |
GlaxoSmithKline Consumer Healthcare (UK) Trading Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Consumer Healthcare (UK) Trading Limited |
Country of incorporation | England |
GlaxoSmithKline Export Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Export Limited |
Country of incorporation | England |
GlaxoSmithKline Finance PLC [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Finance plc |
Country of incorporation | England |
GlaxoSmithKline Holdings Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Holdings Limited |
Country of incorporation | England |
GlaxoSmithKline Research and Development Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Research & Development Limited |
Country of incorporation | England |
GlaxoSmithKline Services Unlimited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline Services Unlimited |
Country of incorporation | England |
GlaxoSmithKline UK Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | GlaxoSmithKline UK Limited |
Country of incorporation | England |
Setfirst Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | Setfirst Limited |
Country of incorporation | England |
SmithKline Beecham Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | SmithKline Beecham Limited |
Country of incorporation | England |
ViiV Health Care Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | ViiV Healthcare Limited |
Country of incorporation | England |
ViiV Healthcare UK Limited [member] | UK [member] | |
Disclosure of subsidiaries [line items] | |
Name of subsidiary | ViiV Healthcare UK Limited |
Country of incorporation | England |
Principal Group companies - 238
Principal Group companies - Schedule of the Subsidiaries and Their Counties of Incorporation and the Equity Share Capital of These Entities wholly owned by the Group (Parenthetical) (Detail) | 12 Months Ended |
Dec. 31, 2017 | |
Australia [member] | GlaxoSmithKline Consumer Healthcare Australia Pty Ltd [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Australia |
Proportion of ownership interest in subsidiary | 63.50% |
Canada [member] | GlaxoSmithKline Consumer Healthcare Inc. [Member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Canada |
Proportion of ownership interest in subsidiary | 63.50% |
Canada [member] | ID Biomedical Corporation of Quebec [Member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Canada |
China [member] | Sino-American Tianjin Smith Kline and French Laboratories Ltd [Member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | China |
Proportion of ownership interest in subsidiary | 34.90% |
India [member] | GlaxoSmithKline Consumer Healthcare Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | India |
Proportion of ownership interest in subsidiary | 72.50% |
India [member] | GlaxoSmithKline Pharmaceuticals Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | India |
Proportion of ownership interest in subsidiary | 75.00% |
Japan [member] | GlaxoSmithKline Consumer Healthcare Japan K.K. [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Japan |
Proportion of ownership interest in subsidiary | 63.50% |
Japan [member] | ViiV Healthcare Kabushiki Kaisha [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Japan |
Proportion of ownership interest in subsidiary | 78.30% |
Pakistan [member] | GlaxoSmithKline Pakistan Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Pakistan |
Proportion of ownership interest in subsidiary | 82.60% |
France [Member] | GlaxoSmithKline Biologicals S.A.S. [Member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | France |
France [Member] | GlaxoSmithKline Sante Grand Public SAS [Member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | France |
Proportion of ownership interest in subsidiary | 6350.00% |
France [Member] | Laboratoire GlaxoSmithKline [Member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | France |
France [Member] | ViiV Healthcare SAS [Member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | France |
Proportion of ownership interest in subsidiary | 78.30% |
Germany [Member] | GlaxoSmithKline Consumer Healthcare GmbH and Co. KG [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Germany |
Proportion of ownership interest in subsidiary | 63.50% |
Italy [member] | GlaxoSmithKline Consumer Healthcare S.p.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Italy |
Proportion of ownership interest in subsidiary | 63.50% |
Poland [member] | GlaxoSmithKline Consumer Healthcare S p z o o [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Poland |
Proportion of ownership interest in subsidiary | 63.50% |
Spain [Member] | Laboratorios ViiV Healthcare, S.L. [Member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Spain |
Proportion of ownership interest in subsidiary | 78.30% |
Switzerland [Member] | Novartis Consumer Health S.A. [Member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | Switzerland |
Proportion of ownership interest in subsidiary | 63.50% |
US [member] | Block Drug Company Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | US |
Proportion of ownership interest in subsidiary | 63.50% |
US [member] | GlaxoSmithKline Consumer Health Care L P [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | US |
Proportion of ownership interest in subsidiary | 55.90% |
US [member] | GSK Consumer Health, Inc [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | US |
Proportion of ownership interest in subsidiary | 63.50% |
US [member] | Vii V Health Care Company [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | US |
Proportion of ownership interest in subsidiary | 78.30% |
UK [member] | Glaxo Group Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | Glaxo Operations UK Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | GlaxoSmithKline Capital PLC [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | GlaxoSmithKline Consumer Healthcare Holdings Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
Proportion of ownership interest in subsidiary | 63.50% |
UK [member] | GlaxoSmithKline Consumer Healthcare (UK) Trading Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
Proportion of ownership interest in subsidiary | 63.50% |
UK [member] | GlaxoSmithKline Export Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | GlaxoSmithKline Finance PLC [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | GlaxoSmithKline Holdings Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | GlaxoSmithKline Research and Development Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | GlaxoSmithKline Services Unlimited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | GlaxoSmithKline UK Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | Setfirst Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | SmithKline Beecham Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
UK [member] | ViiV Health Care Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
Proportion of ownership interest in subsidiary | 78.30% |
UK [member] | ViiV Healthcare UK Limited [member] | |
Disclosure of subsidiaries [line items] | |
Country of incorporation | England |
Proportion of ownership interest in subsidiary | 78.30% |
Legal Proceedings - Additional
Legal Proceedings - Additional Information (Detail) £ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Sep. 30, 2016USD ($) | Feb. 28, 2018USD ($) | Dec. 31, 2017GBP (£) | Dec. 31, 2016GBP (£) | Feb. 12, 2016GBP (£) | |
Disclosure of Legal Proceedings [line items] | |||||
Provisions for legal and other disputes | £ 186 | £ 344 | |||
Acts of violence [member] | |||||
Disclosure of Legal Proceedings [line items] | |||||
Amount of compensation awarded to plaintiff | $ | $ 3 | ||||
UK Competition and Markets Authority [member] | |||||
Disclosure of Legal Proceedings [line items] | |||||
Fine paid by group | £ 37.6 | ||||
Fine paid by other companies | £ 7.4 | ||||
SEC/DOJ and SFO Anti-corruption enquiries [member] | |||||
Disclosure of Legal Proceedings [line items] | |||||
Civil Penalty | $ | $ 20 | ||||
Zofran [Member] | Commencement of major litigation [member] | United States [Member] | |||||
Disclosure of Legal Proceedings [line items] | |||||
Number of personal injury cases | 420 | ||||
Zofran [Member] | Commencement of major litigation [member] | Massachusetts United States [Member] | |||||
Disclosure of Legal Proceedings [line items] | |||||
Number of personal injury cases | 406 |